1.As of 31 December 2018, the stock price of Marriott International (MAR) is $9.74. The company's dividend per share for the fiscal year ending 31 December 2018 was $0.27. You expect the dividend to increase by 10% for the next three years and then increase by 8% per year forever. You estimate the required return on equity of MAR to be 12%.

(a) Estimate the value of MAR using a two-stage dividend discount model.

(b) Judge whether MAR is undervalued, fairly valued, or overvalued.

Can you help explain this to me?