15. The share of MRU Corp. currently trades at $50. You are a financial analyst, and your manager

asks you to use DDM to estimates the intrinsic value of MRU Corp and report back if it is

correctly valued by the market. Using the following information, please show the detail of your

analysis and say clearly what you will report back to your manager.

Number of shares outstanding: 500,000

Constant Net income (last year = next year's): $3M

Constant Retention rate to finance growth: 65%

Book equity: $37.5M

Discount rate: 9%

please show work not on excel