Question: need help in question 7 Q6. Using the Dividend Discount Model (DDM), what is the expected stock price for a company with a current dividend

need help in question 7

Q6. Using the Dividend Discount Model (DDM), what is the expected stock price for a company with a current dividend of $1.45, an expected growth rate of 3%, and a required rate of return of 10%? SHOW YOUR WORK Q7. Referring to Q6 above, if the current market price for the same company is $20, all else being equal and based on your DDM calculation alone, is this stock overvalued, undervalued, or fairly valued; b) would you recommend buying, holding, or selling the stock? Explain your answer and justify/quantify your recommendation

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