See below for information on AMGN Corp.'s income statement. In addition: --The company's dividend payout ratio is 30% of net income and the company has 200,000 shares outstanding. --It just paid a dividend of $1.35. The dividend is expected to increase by 5.0% next year (year 1), 4.0% in year 2 and then increase at a constant rate of 2.5% thereafter --Investors require an annual return of 12.0% on the stock --The current year income statement for AMGN is below SHOW YOUR WORK 1) What is the market value of a share of AMGN's stock using the dividend discount model? Answer 2) What would the required return on the stock have to be for a price based on the dividend discount model to be $10? Answer AMGN, Corp. Revenue COGS Gross profit SG&A Depreciation EBIT Interest EBT Tax @25% Net Income Current year $ 7,500,000 4,250,000 3,250,000 1,125,000 375,000 1,750,000 550,000 1,200,000 300,000 $ 900,000