Week 6: Discussion Use the Dividend Discount Model to calculate the intrinsic value for Pepsi (PEP). Explain your assumptions for the discount rate and the expected dividend growth rate. Use the expected dividend listed on yahoo finance and/or morningstar as the dividend D1 in the DDM formula. Compare your calculated intrinsic value to the current market price of the stock. is the stock overvalued or undervalued in your opinion. DDM Formula: Intrinsic Value =r=D1 where r is the discount rate. and g is the expected growth rate of dividends