6. The required return on equity, rs, is the final input needed to estimate intrinsic value. For our purposes you can either assume a number (say, 8% or 9%) or use the CAPM to calculate an estimated cost of equity using the data available in Thomson ONE. (For more details, take a look at the Thomson ONE exercise for Chapter 2). Having decided on your best estimates for D1, rs, and g, you can then calculate XOM’s intrinsic value. How does this estimate compare with the current stock price? Does your preliminary analysis suggest that XOM is undervalued or overvalued? Explain.