Using the variable growth model, calculate the estimated stock value of the organization. The organization's most recent annual dividend payment was $0.50 per share. Dividends are expected to increase...

Using the variable growth model, calculate the estimated stock value of the organization. The organization's most recent annual dividend payment was $0.50 per share. Dividends are expected to increase by 5% annually over the next 4 years. At the start of the 5th year, dividend growth rate is expected to slow down to 3% annually for the foreseeable future. Required return on the stock is estimated to be at 10% per annum.

Market Value of All Debt: $ 1 million
Market value of Preferred Shares = $ 1 million
# of shares of common stock outstanding = 200,000