Riskfree rate = 0.03

Market rate = 0.11

N is the current year. In general, the EPS and dividend for N will be given.

1. Loews has a beta of 0.95 and a fixed dividend of $0.25. What is its intrinsic value? If it's currently trading at about $49.59 a share, is it over or under valued?

2. 3M has a beta of 0.95, an expected dividend of $5.82 next year, and an 8% growth rate. If it's trading at $201.10, is it over or under valued?

3. Use the information below and the CD&E model to determine whether Standex is over or under valued if it's trading at $79.41.

4. CDK Global's three most recent P/Es are 30.30, 32.2, and 40.4. Its current EPS is expected to be $2.5. If its current price is $50.77, is it over or under valued?

5. Use the information below and the 2-stage Growth Model to find Bank of America's intrinsic value. Forecast its cash flows from 2019 through 2021. If its current price is $28.52, is it over or under valued?

6. Omnicom has three major competitors: RR Donnelly (P/E = 6.0), CDK Global (P/E = 27.7), and Interpublic (P/E = 14.0) . Omnicom's current EPS is expected to be $5.70. If OMC's current price is 75.57, is it over or under valued?

N N-1 N-2 N-3 N+1 6.05 0.82 0.13 0.12 EPS Dividend DPO ROE Beta P/E 0.13 0.15 1.0 19. 7 17.2 16.7 N+1 N+2 N+3 N+4 N 1.20 Beta ROE DPO Div 0.10 0.25 0.10 0.45 0.10 0.45 0.54