A company has 1M shares outstanding, a book value of equity of $100M, a constant opportunity cost of equity of 10%, a constant plow back ratio of 30%, and has no debt. The current price of the stock of this company is $400. The company just paid $14 dividend today. The annual EPS is expected to be $20 in the next 5 years (EPS-EPSS-S20). And EPS6-EPS 0-530, EPS 11-EPS20-S40, EPS21- EPS40-$60. From year 41st, the EPS is expected to grow at 7% every year until forever. The industry average P/E ratio is 15 and M/B ratio is 3. (22 points) 8. (1) 40 years later, how much will the PVGO of this company be? (8 points) (2) Based on DCF, is this stock undervalued or overvalued? (8 points)