Olga Morgan, CFA, has been asked to use the dividend discount model to determine the value of Sundance Inc. Morgan anticipates that Sundances earnings and dividends will grow at 32% for two years and 13% thereafter. Calculate the current value of a share of Sundance stock by using a two-stage dividend discount model and the data in the spreadsheet.

A B D E F C 1 Sundance financial statements ($million) 2 3 Income Statement 2022 nmn 2021 474 598 Required rate of return Growth rate of industry Industry P/E ratio 14% 13% 26 23 $ $ $ $ $ $ 20 368 86 $ 460 115 26 35 60 $ 80 18 24 $ $ $ 0.71 $ 0.21 $ 0.95 0.29 84 84 4 Revenue 5 Depreciation 6 Other operating costs 7 Income before taxes 8 Taxes 9 Net income 10 11 Dividends 12 Earnings per share 13 Dividend per share 14 Shares outstanding (millions) 15 16 Balance Sheet 17 Current assets 18 Net property, plant, and equip. 19 Total assets 20 21 Current liabilities 22 Long-term debt 23 Total liabilities 24 Shareholder's equity 25 Total liab & equity 26 27 Capital expenditures 28 $ $ $ 2021 201 $ 474 $ 675 $ 2022 326 489 815 141 $ $ $ $ $ 57 $ $ 57 $ 618 $ 675 $ 141 674 815 $ 34 $ 38