PLEASE PROVIDE EXCEL SCREENSHOT WITH EQUATIONS DISPLAYED.

A rapidly growing firm is currently paying a dividend of $4.00. The dividend growth rate is

expected to be 8% for the next 3 years. The dividend growth rate after the first 3 years is

expected to be 2% annually. The expected return on the market is 7%, the risk free rate is 3%

and the firm's Beta is 1.20.

a. Calculate the estimated price (intrinsic value) for a share of this firm's stock.

b. What does this firm's Beta indicate about the firm's overall riskiness?

c. Use Goal Seek to determine what the expected return of the market would need to be

to yield an estimated price (intrinsic value) of $100.