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This questions is directly related to stock valuation. Answer the following question: Use two (2) companies that have paid out dividends for the past five

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This questions is directly related to stock valuation. Answer the following question: Use two (2) companies that have paid out dividends for the past five years (2011-2015) 1.Using the past dividend payout information.between 2011 and 2015, compute the growth rate (g) for these companies. Your companies must have complete history of dividend payout during these periods. You can find such information at www.dividendinformation.com. If your company lacks the dividend payout information, you need to select new company. Show me your works (35 points), 2 First, let's assume that required return (R) is 10% for all these companies. Using R, dividend information, and growth rate (g) from the question 1, compute the stock prices of these companies. Second, let's assume that required return (R) is 20% for all these companies. Using R, dividend information, and growth rate (g) from the question 1, compute the stock prices of these companies. Show me your works (35 points). 3. Compare your estimated stock prices with actual stock prices as of January 2, 2016. Then tell me whether each stock is undervalued or fair-valued or overvalued based on your estimation. What's your decision if you hold these stocks? What's your decision if you don't hold these stocks? Please show step-by-step formulas and ways you achieve all answers

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