8. Select a stock whose name begins with the first letter ofyour last name. From the Value Line Investment Sumcy find the average annual compounded growth rate in the stock's dividend over the last five years. Assume that this growth rate will continue indefinitely. Also from the Value Line Investment Sumcy find the beta of the stock. Using the current riskfree rate (gO-day Treasury bills as found in The Wall StreetJournal) and a 6% expected market risk premium, calculate the SML and the required return on the stock. Finally, using the dividend growth rate and the required return, calculate the intrinsic value of the stock. (Note: If the data for your stock are incompatible with the constant-growth DDM, select another stock.) Compare this intrinsic value with the latest closing price for the stock. Is the stock underpriced or overpriced? What potential problems are involved with this approach to making investment decisions?