Question: 3.25$ is the current dividend, and it is expected to grow at 11% for three years, and 5.5% after the three years. If the cost
3.25$ is the current dividend, and it is expected to grow at 11% for three years, and 5.5% after the three years. If the cost of equity is 9.2%, what is the intrinsic value of the stock?
If the current value of the stock is 70$, is it over or undervalued?
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