Start using the Constant Growth Model (2/15) Horizon (~) Valuation: Stock Price today or at Value line report date Dividends payed 2021 Full year Estimate the Earnings Growth & Dividend Growth rates from Value Line rerport using an average between the Long Term 10 year, Short term 5 year and Forecast (2019-2022) rates of growth. Look at Beta for Company on Value line report. (Use it in next step) Use Return on market stock Rm = 8.75% and Risk free rate = 2.5% and calculate your Rs for your company assigned using CAPM: Rs = Rf + Beta (Rm-Rf) Calculate the Price of your stock using Gordon Constant Growth Model: Po = Do(1+gc) / (Rs-Gc) Continue using the Two Step Gordon Growth Model: Estimate the Earnings Growth / Dividends Growth Rate for the 1 year, 2 years, and 3 years forecast by weighting the Forecast (50%) and 5-year Growth rate (50%) probability for your forecast. Use the Two Step Gordon Growth model using the Present Value of Amounts for years 2022, 2023 and 2024 and then the Horizon (~) Model as in Part 1 from year 3 trough infinity(horizon). Must determine g1, g2 and g3 for first three years and then use the Gc beyond year 3 as the textbook explains. Invest $10 millions in Stocktrak for this company or another company you recommend to see the results during this week and next term.