Peterson Dune Company paid a $3 dividend per share last month. The cost of capital is 5% and the company is expected to grow at 3% per year forever. How much should be the value of the stock? If the shares are selling for $55 in the market, is it over-valued or under-valued? Should you buy it? Cleese Payment Company is expected to pay a $3 dividend per share at the end of this year. The company's beta is 1 . Three months US Treasury bill yield is 2%, and the return on the S\&P 500 index is 10%. It is expected to grow at 4% per year forever. How much should be the value of the shares