Assume today is March 1, 2020. You are considering buying a stock on March 1, 2020 for a price of $120. You plan to sell the stock on January 1, 2022. The projected dividends and earnings per share are as follows: Year Projected Dividends (August 1st) 2020 $4 2021 $5 2022 and thereafter $6 The EPS at the end of 2022 is projected to be $32 (long term stable EPS) Assume all dividends are paid on August 1st of each year. Based on the dividend discount model, a) Estimate the present or theoretical value of the stock as of March 1, 2020. (Use 10% as the required return) Hint: the first dividend in August 1st is 7 months from today March 1st. b) Is this stock under or overpriced? By how many percent?