Studying the dividend status is one of the basic methods of valuing stocks: Dividend Discount Model.

Assume the following metrics for Disney:

1. Discount rate: 14.885%

2. The dividends are expected to grow 13%, 13%, 14%, 25%, 14.7% for the next five years with the constant growth rate of 12.9%.

3. The current dividend is $1.42.

Calculate the theoretical stock price for Disney. Compare your answer to todays stock price. What do you see? Would you recommend potential investors to purchase Disneys stock? Why or why not?