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Amansan Co.Ltds stock is currently trading at Ghc 110 per share. You have forecasted that Amansan Co. Ltd. Will pay dividends of Ghc2.5 in the

Amansan Co.Ltd’s stock is currently trading at Ghc 110 per share. You have forecasted that Amansan Co. Ltd. Will pay dividends of Ghc2.5 in the first year, Ghc3 in the second year, and Ghc3.25 in the third year. You expect that at the end of the third year, the selling price of the company’s stock will be Ghc125 per share. The estimated cost of capital is 5%. What is the intrinsic value of the Amansan Co. Ltd’s stock? Is the stock overvalued or undervalued. Is it worth investing in such a company?

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