According to your research, the growth rate in dividends for SIR for the next five years is expected to be $20$ percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to $5\mathrm{.}25$ percent indefinitely. Assume investors require a return of $12$ percent on SIR stock. $($Hint: the number after the company's name above is D$0.)$

Requirement $1$:

According to the dividend growth model, what should the stock price be today? $($Do not round intermediate calculations. Round your answer to $2$ decimal places $($e$.$g$.,32\mathrm{.}16).)$You$\text{'}$ve collected the following information from your favorite financial website.

$\backslash$table$[[52-$Week Price,Stock $($Div$),\backslash$table$[[$Div$],[$Yld $\%]],\backslash$table$[[$PE$],[$Ratio$]],\backslash$table$[[$Close$],[$Price$]],\backslash$table$[[$Net$],[$Chg$]]],[Hi,$Lo$],[77\mathrm{.}40,10\mathrm{.}43,$Palm Coal $0\mathrm{.}36,2\mathrm{.}6,6,13\mathrm{.}90,-0\mathrm{.}24],[55\mathrm{.}81,33\mathrm{.}42,\backslash$table$[[$Lake Lead Grp$],[1\mathrm{.}54]],3\mathrm{.}8,10,40\mathrm{.}43,-0\mathrm{.}01],[\backslash$table$[[130\mathrm{.}94],[50\mathrm{.}24]],\backslash$table$[[69\mathrm{.}55],[13\mathrm{.}95]],\backslash$table$[[$SIR $2\mathrm{.}05],[$DR Dime $0\mathrm{.}80]],\backslash$table$[[2\mathrm{.}3],[5\mathrm{.}2]],\backslash$table$[[10],[6]],\backslash$table$[[88\mathrm{.}98],[15\mathrm{.}43]],\backslash$table$[[3\mathrm{.}07],[-0\mathrm{.}26]]],[35\mathrm{.}00,20\mathrm{.}74,\backslash$table$[[$Candy Galore$],[0\mathrm{.}32]],1\mathrm{.}5,28,??,0\mathrm{.}18]]$

According to your research, the growth rate in dividends for SIR for the next five years is expected to be $20$ percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to $5\mathrm{.}25$ percent indefinitely. Assume investors require a return of $12$ percent on SIR stock. $($Hint: the number after the company's name above is DO$.)$

Requirement $1$:

According to the dividend growth model, what should the stock price be today? $($Do not round intermediate calculations. Round your answer to $2$ decimal places $($e$.$g$.,32\mathrm{.}16).)$

Current stock price

Requirement $2$:

Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued?