Problem 3 (20 points) Your task is to value the stock price of Wildcat Co. with the Dividend Growth Model (DGM) in constant growth. You have the following information: $3.85 4% 1.20 10% Recent dividend per share (D Risk-free rate (Rrf) Beta of the stock (B) Average stock return on the market (Rm) Estimated long-term dividends growth rate (g) 5% Calculate the value of the stock of Wildcat Co. using the Dividend Growth Model (DGM) in constant growth. The stock currently trades at $29.56 in the stock market; would you recommend buying it? 1) 2)