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Monfort, Inc., declared the following data for the last FY: Earnings per Share = $3 Total Debt = $ 12.5 Total Debt ratio (TD/TA) -

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Monfort, Inc., declared the following data for the last FY: Earnings per Share = $3 Total Debt = $ 12.5 Total Debt ratio (TD/TA) - 1/2 Dividend per Share paid = $0.9 In addition a Bloomberg analyst estimates the following regression equation on 5-year biweekly return observations: E(RMonford) = 0.5% +1.52"(RsP500) Expected return on SP500 index =13% 10-year T-note rate = 3%. Actual stock price per share = $54.5 Based on this information estimate the intrinsic value per share for this stock. What is the best trading strategy you would suggest and why? (Take your time! Please show all your steps clearly. Show your work, calculations and formulas. Make sure to upload pictures of your work or completed excel files if any)

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