Assume that the five-year estimates for net income growth for General Electric, McDonald's, and Walgreens are the same as their dividend growth rates-that is, earnings and dividends grow at the same rate.

a. For each of these three firms, estimate the dollar amount of dividends per share over each of the next five years.

b. Find the present value of each dividend stream from Part a. Use a discount rate of 10 percent for each firm. (This is a simplification; in reality, we would need to estimate the required rate of return for each firm.)

c. For each firm, compare its current stock price with the estimated present value of its dividends over the next five years. Given our assumptions, what proportion of the stock price arises from cash flows beyond the next five years?