A. Utilizing Bloomberg, Yahoo Finance, Google Finance, etc. as a source of data, collect the following information:

a. The stocks Beta

b. The rate of return on the market (S&P 500 Index)

c. The risk-free rate ( )

d. The last dividend paid ( )

e. The annual expected growth rate of earnings

B. In Excel, use the Discounted Dividend Model for Constant Growth Stocks and solve for the intrinsic stock price ( )

Based on your above calculations, compare the calculated price with the current market price and indicate whether is the stock price overvalued, undervalued, or at equilibrium? Explain.

C. Now, assume that your company has just released a new product and will be experiencing supernormal growth of 25% for the next three years. In Excel, use the information in A and the Discounted Dividend Model for Nonconstant Growth Stocks and solve for the intrinsic stock price ).

Previous Close Open Bid 71.49 Market Cap 115.471B 72.34 Beta (3Y Monthly) 0.96 71.53 x 800 PE Ratio (TTM) 57.61 Ask 72.50 x 900 EPS (TTM) 1.26 Day's Range 52 Week Range Volume 72.27 73.00 Earnings Date Dec 20, 2018 088 (1.23%) 2018-11-30 58.54 - 86.04Forward Dividend & Yield 5,876,679 Ex-Dividend Date Avg. Volume 7,817,233 y Target Est 87.45 Previous Close Open Bid 71.49 Market Cap 115.471B 72.34 Beta (3Y Monthly) 0.96 71.53 x 800 PE Ratio (TTM) 57.61 Ask 72.50 x 900 EPS (TTM) 1.26 Day's Range 52 Week Range Volume 72.27 73.00 Earnings Date Dec 20, 2018 088 (1.23%) 2018-11-30 58.54 - 86.04Forward Dividend & Yield 5,876,679 Ex-Dividend Date Avg. Volume 7,817,233 y Target Est 87.45