une Withers is analyzing four stocks in the processed food industry as of December $31,2017.$ All stocks pay a dividend at the end of each year.

Ukon Corporation

Withers estimates a required rate of return for Ukon Corporation of $8\%$ and notes that the dividend for $2017$ was EUR $2\mathrm{.}315$ per share. Her first valuation approach is a basic two$-$stage dividend discount model $($DDM$),$ with dividends growing at a rate of $5\%$ from $2018$ through $2021,$ after which time dividends will grow at a sustainable rate of $3\%.$ Her second valuation approach is the H$-$model, assuming that dividend growth of $5\%$ in $2018$ declines linearly during the years $2019$ through $2021$ to the $3\%$ growth rate after $2021.$ Her dividend growth assumptions are summarized in Exhibit $1.$