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2 ) An analyst is reviewing the valuation of DuPont as of the beginning of May 2 0 2 4 when DuPont is selling for

2)An analyst is reviewing the valuation of DuPont as of the beginning of May 2024 when DuPont is selling for $60. In the previous year, DuPont has a $2 cash flow per share that the analyst expects to grow at a rate of 10 percent annually for the next five years. Starting from the end of Year 5, the analyst expects the cash flows grow 5 percent annually, which is expected to last forever. If the required return on DuPont common stock is 8.0 percent, Please calculate the per-share value of DuPont common stock. And make a recommendation to buy or sell the stock if the stock is undervalued or overvalued comparing to its market price.

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