Master inc's dividends are expected to grow at 5 percent on average into the foreseeable future, they are currently paying out $1.75 per year.

- what should be the current price of the stock assuming a 9 percent required return?

-if the stock was priced at $40, is the stock under or overvalued? (use two decimals)

- Master Inc is expected sales to fall due to competition which will decrease growth to 3%, what impact will this have on the share price and would you sell?