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6. You are analyzing the stock of Walgreens Boots Alliance (WBA), a healthcare company, as of late August 2020. The stock price is $38.02. The

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6. You are analyzing the stock of Walgreens Boots Alliance (WBA), a healthcare company, as of late August 2020. The stock price is $38.02. The company's dividend per share for the fiscal year ending 30 August 2020 was $1.85. You expect the dividend to increase by 6 percent for the next three years and then increase by 3 percent per year forever. You estimate the required return on equity of WBA to be 8.8 percent A. Estimate the value of WBA using a two-stage dividend discount model. (6 points) B. Judge whether WBA is undervalued, fairly valued, or overvalued. (1 point)

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