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Home Depot recently paid a dividend of $1.16 per share. The dividend is expected to grow at 3% per year forever. Its stock is currently
Home Depot recently paid a dividend of $1.16 per share. The dividend is expected to grow at 3% per year forever. Its stock is currently sold at $12.31 per share. The discount rate is 10%. Compare its price and value using DDM. Note: Please retain at least 4 decimal places in your calculations and choose the closest option. O a. Its value using DDM is $16.57. Home Depot is overpriced. O b. Its value using DDM is $12.31. Home Depot is fairpriced. O c. Its value using DDM is $16.57. Home Depot is underpriced. O d. Its value using DDM is $17.07. Home Depot is underpriced. O e. Its value using DDM is $17.07. Home Depot is overpriced
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