Assume Target Corp just paid a dividend of $2.72 this past year. Also assume that Target dividend is expected to grow at 15% in the next four years. After that, the growth rate in dividends is expected to level off to a perpetual 6%. Finally, assume that the cost of equity for the stock of Target is estimated at 8%. Given these assumptions, what is the estimated value of the stock of Target? If the stock trades at $230 in the stock market, would you consider the stock undervalued or overvalued? $198.09: undervalued O $237.86; overvalued $198.09: overvalued O $252.20: overvalued $252.20: undervalued $237.86; undervalued Question 11 1 pts Which of the following is FALSE about the constant growth dividend discount model? The results from it are very sensitive to small changes in growth rate. Future dividend growth rate is often difficult to predict. It requires that the growth rate always be higher than the required rate of return, which is not realistic. It cannot estimate the value of a stock when the growth rate in dividends is not constant. It cannot estimate the value of a stock that pays no dividends