QUESTION ONE KenBoss Limited is trying to value the stock of Resources Limited. To easily see how a change in one or more of her assumptions affects the estimated value of the stock, she is using a spreadsheet model. The model has projections for the next four years based on the following assumptions. Sales will be Ksh300 million in Year 1. Sales will grow at 15 percent in Years 2 and 3 and 10 percent in Year 4. Operating profits (EBIT) will be 17 percent of sales in each year. Interest expense will be Ksh 10 million per year. Income tax rate is 30 percent. Earnings retention ration would stay at 0.60. The per-share dividend growth rate will be constant from Year 4 forward and this final growth rate will be 2% less than the growth rate from Year 3 and Year 4. . . The company has 10 million shares outstanding. KenBoss Limited has estimated the required return on Resources' stock to be 13 percent. a) Estimate the value of the stock at the end of Year 4 based on the above assumptions. b) Estimate the current value of the stock using the above assumptions