You are asked to analyze The Haus of Us, a local manufacturer of house decor and accessories. Last year, the company distributed P2.00 per share dividend. The company has a beta of 1.2, the risk market return of 13% and the risk free rate of 6%. Required:  Suppose the company is expected to experience zero growth during the first 2 years, then a variable growth of 15% on the succeeding 3 years and to resume its steady growth of 8% to infinity. What is the value of the stock?

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Q: You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you…

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