Problem 3: (20 points) Your task is to value the stock price of Air Co. with the Dividend Growth Model (DGM) in constant growth. You have the following information: $4.25 3.50% 1.10 12% 6% Recent dividend per share (Do) Risk-free rate (Rrf) Beta of the stock (B) Average stock return on the market (Rm) Estimated long-term dividends growth rate (g) Calculate the value of the stock of Air Co. using the Dividend Growth Model (DGM) in constant growth. The stock currently trades at $32.35 in the stock market; would you recommend buying it? 1) 2)