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4. Given the following information, is the stock over, under or fairly valued? Current share price: 22.56 Current annual dividend per share: 1.60 Annual dividend

4. Given the following information, is the stock over, under or fairly valued? Current share price: €22.56 Current annual dividend per share: €1.60 Annual dividend growth rate for Years 1-4: 9.0% Annual dividend growth rate for Years 5 : 4.0% Required rate of return: 12.0% Formula: V0 = D1 D2 D3 D4 Vn where Vn = Dn 1 (1 r) (1 r)2 (1 r)3 (1 r)4 (1 r)n (r-g1)

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