Part $2$: Preliminary Valuation: $($two to three paragraphs$)$

Calculate the stock price for your selected company using the constant growth formula and the dividend growth rate you determined in Part $1.$ Show all

calculations for this estimated stock price using the dividend growth rate.

For the required rate of return $(r),$ use the following assumptions:

For a large capitalization company $($greater than $$10\mathrm{.}0$ billion in market capitalization$)$ use $12\mathrm{.}0\%.$

For a mid$-$cap company $($between $$2\mathrm{.}0$ billion and $$10\mathrm{.}0$ billion in market capitalization$)$ use $15\mathrm{.}0\%.$

For a small$-$cap company $($less than $$2\mathrm{.}0$ billion in market capitalization$)$ use $18\mathrm{.}0\%.$

Show your calculations.

Compare the stock price you just calculated to the current stock price per share of the company.

State whether the constant growth stock price is above or below the current price.

State whether the constant growth stock price indicates if the stock price is currently under$-$valued or over$-$valued in the market.

Determine your concluded stock value, based on the calculation using the constant growth formula. The concluded stock value can be either:

the calculated value using your dividend growth rate and the constant growth formula;

the current market value;

Justify your conclusion of value for your stock. Include least two financial facts from your Week $1$ and Week $2$ analyses.