How is AIC currently valued in the stock market? (under, over, fairly)

Your firm's client makes her investment decisions based on research report and requires 30% margin safety. What would be her investment decision if AIC price falls to $40?

You are valuing Apex Intelligence Company (NYSE: AIC) with the H-model approach. The relevant inputs to your valuation along with the market value are as follows: - Current dividend is $2.00. - The initial dividend growth rate is 15 percent, declining linearly over a 10 -year period to a final and perpetual growth rate of 5 percent. - The risk-free rate is 3 percent, the market risk premium is 7 percent, and the beta of AIC, estimated against S\&P 500 , is 1.0 - The 52 week range of AIC price is $50.00 - $75.55. The current market price is $55.08. Compute the intrinsic value of AIC using the H-model. 1) $62.00 2) $75.55 3) $85.55 4) $100.55 5) $136.67