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Question 2: (5marks) Given the summary quote below of Microsoft Corporation: M 241.45 x 300 PERCITO 36.03 241.450 6.73 238.05 - 242.00 Apr 26 2021

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Question 2: (5marks) Given the summary quote below of Microsoft Corporation: M 241.45 x 300 PERCITO 36.03 241.450 6.73 238.05 - 242.00 Apr 26 2021 May 02, 2023 SZ W R150.36-246.22 22400 16.545.430 Odend Date May 1, 2021 30.562,073 272.71 Source : finance yahoo.com (2021) 1-Estimate a discount rate for Microsoft Corporation assuming the Treasury bill rate equal to the first number of your ID (from the left) and the stock market risk premium equal to the total of 4- digit numbers of your ID (from the left). Example: Suppose your ID=20167021, then the Treasury bill rate=2 and the stock market risk premium=10 (7+0+2+1) 2- Given the financial highlights below, estimate the sustainable growth rate. Financial Highlights Fiscal Year 2020 Dec 30, 2020 Profitability Management Effectiveness non en ont Source: finance yahoo.com (2021) 3- Calculate the expected stock price using the constant dividend growth rate model. 4- Calculate the expected stock price using the two-stage dividend growth model assuming the firm will initially grow at a rate gl (sustainable growth rate calculated in section 1) for 4 y years, and thereafter, it will grow at a rate (g2=4%) forever

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