You are considering investing in Duck's Donuts. Dividends are expected to be $1.02, $1.13, and $1.27 Future net income is expected to be $10,150,205 and common shares outstanding 1,500,000. Find the EPS (earnings per share). P/E is expected to be 9.02 The required rate of return is 7.75% Find the current value of the stock if you want a 7.75% rate of return. (Use the appropriate formula from above and find the current value of this stock, remember to show all of your work.)

Variable growth model Value of a share of stock = DCF model Value of stock = d (1+r) d (1+r) D (1+r) D (1+r) Dn (1+r)n Dn (1+r)n (EPS X PE) (1+r)n Dn(1+g) (r-g) (1+r)n