Among all the intrinsic valuation methods, which of the following would you rather consider in doing stock trading? Explain why. 

2. Alpbatross Company is expected to pay a P50/share common stock dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock is 15%. 

 

• What is the intrinsic value of the common stock today? 
• Assume that the current price of the stock in stock exchange is P600. Is the stock worth buying for? Explain.
• Assume you currently owned the said stock, and in the stock exchange, the current selling price of the stock is averaging at P600. Will you sell the stock now? Explain.