WBS has a market price of $50$ per share, and has just paid a dividend of $2.$ lts

EPS $($earnings per share$)$ in the past year is $4,$ and both EPS and dividend growth

rate are expected to be $2\%$ per year. According to the growth constant growth

DDM Model, what should be the price of WBS if its expected rate of return is $8\%?$

Is it undervalued or overvalued?

You are planning to hold the stock for two years because you expect that the

price of stock at that time will be aligned with industry average P$/$E ratio of $15.$

According to the Present Value Model, what should be the present value of WBS

if its expected rate of return is $8\%?$ What would be the present value if the

expected rate of return is $7\%?$