To estimate the value of a stock using the finite time periods in the discounting cash flows method, all of the following are needed EXCEPT a. the Treasury rate. b. the required rate of return. c. the holding period. d. an estimation of future cash flows.

After using the constant growing dividend method to value a stock, it is found that the valuation is less than the current price. What conclusion can be made about the stock relative to price? a. The stock is overvalued. b. The value of the stock cannot be determined. c. The stock is undervalued. d. The stock is properly valued.