Use the following data to calculate your stock value. Assume you use the historical geometric average growth rate (rounded to 2 decimals) for initial growth rate for 4 years. Then you believe it will drop to constant growth rate of 7% per year indefinitely. Recent total dividend payments were $5Million and there are 5million shares outstanding. T-bill rate was 3.2%, S&P500 mkt return was 6.61%, and beta of this company is 1.2. YEAR DIVIDEND (*M represent millions)

2015 $1.10M

2016 $1.60M

2017 $2.20M

2018 $3.00M

2019 $3.90M

2020 $5.00M

QUESTION #1. What is the stock price per share using dividend discount model? Answer:

QUESTION #2. If the H-Model is applied, what should be the stock value per share? Answer:

Please give explanation, thanks you! :)