Write a neat and professional report pages including graphs with proper legends inserted into a document, if necessary$)$ answering ALL the questions, $1-5$ detailing the sources and methods of your data analyses.

For purposes of this exercise, let$$s take a closer look at the stock of Exxon Mobil Corporation $($XOM$).$ Use websites such as Yahoo! Finance to find the company$$s current stock price and see its performance relative to the overall market in recent months.

$1)$ What is Exxon Mobil$$s current stock price?

$2)$ How has the stock performed relative to S&P $500($market$)$ over the past three months?

To provide a starting point for gauging a company$$s relative valuation, analysts often look at a company$$s price$-$to$-$earnings $($P$/$E$)$ ratio. Go to the website$$s summary quote or key statistics screen to see XOM$$s forward P$/$E ratio, which uses XOM$$s next $12-$month estimate of earnings in the calculation, and to see its current P$/$E ratio.

$3)$ What are the firm$$s forward and current P$/$E ratios?

$4)$ Using the discounted dividend model, estimate XOM stock$$s intrinsic value.

a$)$ To keep things as simple as possible, let$$s assume at first that XOM$$s dividend is expected to grow at a constant rate of $5\%$ annually indefinitely.

b$)$ Go back to the summary $($overview$)$ screen and find XOM$$s current dividend and its Beta.

c$)$ Use the CAPM to estimate of the cost of equity, using the data available on the Internet. You need an estimate of T$-$bills yield as a proxy for risk free rate and yield on S&P $500$ as a proxy for market return.

d$)$ Now put it altogether in the dividend discount model to calculate XOM$$s intrinsic value. Be careful to make sure that the long$-$run growth rate is less than the required rate of return.

$5)$ How does this estimate compare with the current stock price? Does your preliminary analysis suggest that XOM is undervalued or overvalued? Explain.