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You are trying to estimate the share price for DownStream Inc. You have forecasted the following information about eamings and payouts to shareholders for the

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You are trying to estimate the share price for DownStream Inc. You have forecasted the following information about eamings and payouts to shareholders for the next five years (see table below). In addition, you know that after year 5 the company will maintain a constant payout rate of 70% in perpetuity. The company's equity cost of capital (rE) is 12%, its return on new investment is 13%, and it currently has 200 million shares outstanding. Based on the information provided, what is a good estimate for the firm's share price? Select the best one. 1. $51.16 11. $99.85 IIL. \$115. 85 IV. $12,712 V. $83.56

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