Use the following data to calculate your stock value. Assume you use the sustainable growth rate for the next 3 years. T

[answerhappygod]

Use the following data to calculate your stock value. Assume you
use the sustainable growth rate for the next 3 years. Then you
believe it will drop to constant growth rate of 7% per year
indefinitely.
Balance sheet (in millions)
Current Assets
450
Current liabilities
200
Fixed Asset
500
Fixed Debt
250
Total equity
500
Total Asset
950
Total liabilities+equity
950
Income Statement (in millions)
Revenue
500
all expenses
-100
EBIT
400
Interest expens
-100
EBT
300
Tax (0.30)
90
NI =
210
Question #1. What should be the stock value per
share?
You believe your prior calculation with two stage growth rates
are not accurate enough to reflect the true value of the stock.
Hence, you decide to use more growth rates for calculation.
You will still use the sustainable growth rate for the first
3 years. But you believe you should use 20% for year 4, 10% for
year 5 and 6, and then you believe it will drop to constant growth
rate of 7% per year indefinitely from year 7.
Question #2. With this new adjustment, what should be
the stock value per share?