Question: Using the constant-growth method for our Dividend Discount Model (DDM), find the intrinsic value of a share of ABC stock. You may assume that ABC

Using the constant-growth method for our Dividend Discount Model (DDM), find the intrinsic value of a share of ABC stock. You may assume that ABC 's growth rate in dividends and earnings is 8% and that the required rate of return on assets of similar risk is 12%. The most recent dividend for ABC was $3. What is the intrinsic value of a share of ABC stock according to the DDM? $25 $75 $81 $84 If ABC is currently selling for $95, is ABC 's stock price overvalued or undervalued? Overvalued Undervalued

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