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The Dividend Growth Model assumes that the firm will grow indefinitely with a single growth rate that you plug in. In this case, you somehow
The Dividend Growth Model assumes that the firm will grow indefinitely with a single growth rate that you plug in. In this case, you somehow believe that the perpetual growth is the latest 1-year growth. Given all these inputs, you calculate the value of the stock to be $XX.XX. The current price of the stock is $108.86 as shown below. So the stock is now overvalued. That is, you pay $108.86 for something that is worth only $XX.XX.
I need the XX.XX
Here is the info I am given:
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