Using the Constant Perpetual Dividend Growth Model, the P/E ratio, the P/CF ratios, and the P/S ratio, perform valuations on the stock price of GM.

a. For the Constant Dividend Growth Model, find current dividends per share, D(0), from the income statement. Estimate the dividend growth rate, g, or find it on the ratios/statements pages. Justify why you think the estimated growth rate is accurate. Estimate the discount rate, k, using the CAPM and the Dividend Growth model. (Note: Some stocks don't pay dividends. If that is the case, then state that and skip the dividend growth model.)

b. P/E ratio: Find or estimate the EPS growth rate. Predict next year's EPS. Then predict next year's stock price using the average P/E ratio. (Use the average P/E of the last few years.)

c. P/CF ratio: Find or estimate the Cash Flow Per Share (CFPS) growth rate. Predict next year's CFPS. (You can use Cash From Operations on the Cash Flow Statement to approximate operating cash flow.) Then predict next year's stock price using the average P/CF ratio. (Use the average P/CF of the last few years.)

d. P/S ratio: Find or estimate the Sales Per Share growth rate. Predict next year's SPS. Then predict next year's stock price using the average P/S ratio. (Use the average P/S of the last few years.)