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Given the following data of ABC Inc. Dividend just paid (Do) 55 Dividend payout ratio (d) -60% Return on Equity (ROE) - 10% Required rate

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Given the following data of ABC Inc. Dividend just paid (Do) 55 Dividend payout ratio (d) -60% Return on Equity (ROE) - 10% Required rate of return ( - 15% L. Calculate the intrinsic value of ABC stock. [4 points) II. Based on the calculation in part 1, if ABC stock is trading at $40 in the market, is it overvalued or undervalued? Will you buy or sell 11 point For the toolbar, press ALT+F10 (PC) or ALT FN F10 (Mac)

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