Price for #6. Stock Disney Netflix Current Price $113.85 $317.30 Estimated Price 1 year from now $120.49 $398.27 Annual Expected Dividend (D1) $1.72 $0.00

Question: Lets assume Disney is a variable growth stock with an expected annual growth rate in dividends of 20% in year 2, 18% in year 3 and 12% in years 4 and 5 and a constant annual growth rate of 9.5% after year 5. What is your valuation of Disneys stock today using the variable growth dividend discount model? Would you recommend buying Disneys stock today and why? Use current price in #6 to help aid your recommendation.