21 A2 GE Clear Reapply Advanced Sort Filter Text to Outline Get Refresh Data All- & Transform Data Queries & Conn... BUD Columns What If Forecast @ Analysis - Sheet Forecast Sort & Filter Data Tools 31 X AB D E G Q3 As a professional analyst you are responsible for valuing stocks. After gathering data on the Bluth Company you have estimated that its dividend has been growing at a rate of 11% per year. You also estimate that next year's dividend will be $6.34 per share. The stockis currently selling at $59.04 per share, and you believe that an appropriate discount rate is 13%. You expect that the dividend will continue to grow at 119 for the foreseeable future What is the highest price you would recommend your clients pay to putchase this stock? Stock Price Next Dividend Growth Rate Required Return Valuation $ 59.04 $ 6.34 11.09 13.096 Based on your valuation, would you say the stock is overvalued or undervalued? Overvalued or Undervalued? Suppose that after looking at the company more closely you decide that it is getting close to maturity, and you think that the dividend will only grow at 11% for 5 more years. After that you think it will only grow at 4.5%. What is your new valuation? Stock Price Next Dividend Growth Rate 1 Growth Rate 2 Required Return Valuation $59.04 $ 6.34 11.096 +5% 13.0% Directions Q1 02 Q3 lect destination and press ENTER or choose Paste 04 05 El