Upton is a dividend paying company. The dividend just paid, D0, was $2.25 and is expected to grow, g, for the foreseeable futures at a constant 4%. The required rate of return is 9.5%.

a. At what price should Uptons stock sell?

b. Find the intrinsic value today.

c. If the actual market price today is $47.50, do you believe the stock is over/underpriced?