valuation (20 points) 4.0% Growth & Discount Rates Stage 1 Div Growth rate Stage 2 Div Growth rate Terminal Growth Rate Discount Rate Last Dividend Per Share $1.60 Current Price $40 a) Find the cash flow and present value of cash flow for each period by filling the blank in the form below. (5 point) 5 6 Time Period 4 1 2 3 2 2 Stage 1 1 1 Dividend Per Share Discounted Value b) What is the estimated terminal value? (5 point) c) What is the estimated current share price using the dividend growth model? (7 poi d) Is the stock undervalued or overvalued? Why? (3 points) 2.0% 2.0% 6.0% 2