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= 1. You have the following information about a stock: Current price = $22.56 Current annual dividend per share = $1.60 Dividend growth rate Years
= 1. You have the following information about a stock: Current price = $22.56 Current annual dividend per share = $1.60 Dividend growth rate Years 1-4 = 9% Dividend growth rate Years 5+ = 4% Required rate of return = 12% What is the estimated value based on the dividend discount model? Is it fairly valued, undervalued, or overvalued
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