Example: Applying the Gordon Growth Model An analyst obtained the following information regarding Global Shipping Inc.: Current share price = $28 Recent dividend per share = $1.95 Earnings per share = $4.25 Return on equity (ROE) = 15% Required rate of return or cost of equity = 20% Use the Gordon growth model to estimate Global Shipping's intrinsic value. The question requires 4 answers. Use two decimal places! First, calculate the retention rate[retentionrate]. Input the answer as a percentage with two decimal places. Second, calculate the constant growth rate, g. [growthrate]. Third, what is the intrinsic value for the company? [intrinsicvalue]. How much does the dividend growth assumption add to the intrinsic value estimate[growthassumption]? Here, assume growth is 0, and use the equation Value=Do/k-g. Show your work on these 4 questions. Last think to think about. No input needed. Based on the intrinsic value estimate, is the company's shares undervalued, fairly valued, or overvalued