Common shares of the Cisco company were trading on the Toronto Stock Exchange at the end of 2020 at $ 22.15 per share. The company had just distributed to its common shareholders an annual dividend of $ 2.00 per share. Stock analysts predict the following growth rates for dividends at the end of the next four years:

Year Growth rate

2021 7%

2022 5%

2023 4%

2024 3%

Thereafter, the annual dividend would increase by 2.5% per year and this indefinitely. Based on an investor demand of 15%, was Cisco's stock overvalued or undervalued by the market?