Your Research has produced the following for the ABC COMPANY:

ABC's most recent dividend per share was $2 and you have forecasted a dividend growth rate for the next 6 vears as follows:

g1=30%

g2=20%

g3= 12%

g4=9%

g5=7%

g6=6%

• You have forecasted that dividends will grow at a constant perpetual growth rate of 5% per year starting in year 7.
• You've estimated Systematic Risk for ABC by CAPM regression which resulted in a Beta coefficient of 1.21 while the market risk premium is forecasted to be 7% and the risk-free rate is 3%
• Given this information, answer the following AND SHOW FULL PROCEDURE TO RECEIVE CREDIT.

1. What is the required return on equity for ABCP
2. What is the forecasted dividend per share value for ear 7?
3. What is the target price, or terminal value, for ABC in year 6?
4. What is the estimated value per share of ABC stock today?
5. If the current stock price quote for ABC is $59, would you make a buy. sell, or hold recommendation for ABC?

You have forecasted that dividends will grow at a constant perpetual growth rate of 5% per year starting in year 7. You've estimated Systematic Risk for ABC by CAPM regression which resulted in a Beta coefficient of 1.21 while the market risk premium is forecasted to be 7% and the risk-free rate is 3%. Given this information, answer the following: 1.) What is the required return on equity for ABC ? 2.) What is the forecasted dividend per share value for year 7 ? 3.) What is the target price, or terminal value, for ABC in year 6 ? 4.) What is the estimated value per share of ABC stock today? 5.) If the current stock price quote for ABC is $59, would you make a buy, hell, or hold recommendation for ABC