Analyze the company's stock using DDM, CAPM, and valuation based on comparable firms (P/E ratios for example). Is the stock currently fairly priced, overpriced or underpriced? Make sure you clearly state your model assumptions andshow all computations.

checking to see if my answers is correct

Risk-free rate(2018)

2.83%

Beta

0.75

Market risk premium

4.13%

Return on stock

5.93%

EPS(2018)

5.61

Retention ratio

37%

ROE(2018)

24%

D1 (2016)

3.15

D2 (2017)

3.32

D3 (2018)

3.54

Growth rate (2018)

9.0%

P2

59.63

PV of P2

50.17

Po

$56.10

FORMULAS USED:

P₁ = D₃/ (k - g)

P₀ = D1/1.05 + D2/1.05² + P1/1.05³

g = ROE x retention ratio