Please show work and formulas used on Execl. Determine the price of a share of stock whose last annual dividend payment
(D_(0))
was
$2.10
, assuming a required rate of return of
10%
and considering the following: The dividend payment is expected to grow at a constant rate of
4%
per year indefinitely. Compare the calculated intrinsic value in part 1) with the current price of
$27
. Use an IF statement to assess whether the stock is undervalued, overvalued, or fairly valued.

Question

Please show work and formulas used on Execl. Determine the price of a share of stock whose last annual dividend payment

(D_(0))

was

$2.10

, assuming a required rate of return of

10%

and considering the following: The dividend payment is expected to grow at a constant rate of

4%

per year indefinitely. Compare the calculated intrinsic value in part 1) with the current price of

$27

. Use an IF statement to assess whether the stock is undervalued, overvalued, or fairly valued.

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