Question: Show all work please 1. A stock currently has a market price per share of $25. The stock's last cash dividend was $2 per share,
Show all work please
1. A stock currently has a market price per share of $25. The stock's last cash dividend was $2 per share, the company's earnings and dividends ate expected to increase at a constant growth rate of 10% annually. Your required rate of return on this stock is 20%. From a strict valuation standpoint, is this stock fairly valued, undervalued or overvalued? Show all work
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