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 =25% Required rate of return =20% Use the Gordon growth model to estimate Global Shipping's intrinsic value. The question requires 4 answers. Use two decimal places! 1. First, calculate the retention rat Input the answer as a percentage with two decimal places. No need to include the percent sign. Example, 99.98 2. Second, calculate the growth rate Input the answer as a percentage with two decimal places. No need to include the percent sign. Example, 99.98 3. Third, what is the intrinsic value Input the answer as a dollar and cents amount for the share price. No need to include the dollar sign. Example, 99.98 4. How much does the dividend growth assumption add to the intrinsic value estimate ? Here, assume growth is 0 , and use the equation Value =D0/kg. Input the answer as a dollar and cents amount for the share price. No need to include the dollar sign. Example, 99.98 Think about this. No input needed. Based on the intrinsic value estimate, is the company's share undervalued, fairly valued, or overvalued