Data required to solve this extra credit opportunity:

FIN$340$ Company Historical Stock Price & Dividend Performance

Actual Stock Performance:

Stock Price as of

Jan. $1$ Dec. $31$ Annual Dividend Paid

$2016$ $$48\mathrm{.}00$ $$50\mathrm{.}40$ $$3\mathrm{.}50$

$2017$ $$50\mathrm{.}40$ $$45\mathrm{.}36$ $$3\mathrm{.}50$

$2018$ $$45\mathrm{.}36$ $$45\mathrm{.}81$ $$3\mathrm{.}50$

$2019$ $$45\mathrm{.}81$ $$57\mathrm{.}26$ $$3\mathrm{.}70$

$2020$ $$57\mathrm{.}26$ $$54\mathrm{.}40$ $$3\mathrm{.}70$

Key Assumptions:

Estimated Future Annual Growth Rate $($i$.$e$.$ Constant Growth Rate$)$: $5\mathrm{.}0\%$

$10-$Year Treasury Bond Rate $=1\mathrm{.}34\%$

$10-$Year Market Return Benchmark $=9\mathrm{.}50\%$

FIN$340$ Company Beta $=1\mathrm{.}25$ What is the required return $\%$ for FIN $340$ Company stock $($using the Capital Asset Pricing Model$)?$ Using the data provided in the question and the Constant Growth Model, what is the maximum fair $ price to pay for FIN$340$ Company stock? Based on your calculation of the maximum fair price to pay for FIN$340$ Company's stock, was the stock Overvalued $($in other words price was higher than calculated Fair Price$)$ or Undervalued $($in other words price was lower than calculated Fair Price$)$ as of December $31,2020?$ Based on your calculation of the maximum fair price to pay for FIN$340$ Company's stock and comparison to the price as of December $31,2020,$ by how much does the calculated Fair Price for the stock differ from the actual December $31,2020$ price?