Companies are AT&T and Verizon

1. Using the past dividend payout information between 2018 and 2022, compute the growth rate (g) for these companies. Your companies must have a complete history of dividend payout during these periods. You can find such information at www.dividendinformation.com. If your company lacks the dividend payout information, you need to select a new company.

2. First, lets assume that the required return (R) is 10% for all these companies. Using R, dividend information, and growth rate (g) from question 1, compute the stock prices of these companies. Second, lets assume that the required return (R) is 20% for all these companies. Using R, dividend information, and growth rate (g) from question 1, compute the stock prices of these companies.

3. Compare your estimated stock prices with actual stock prices as of January 3, 2023. Then tell me whether each stock is undervalued or fairly-valued or overvalued based on your estimation. Whats your decision if you hold these stocks? Whats your decision if you dont hold these stocks?