You are supposed to analyze the price of Macy$$s $($ticker: M$)$ stock TODAY:

ValueLine.com projects that next year$$s annual dividend for M $($D$1)$ will be $$0\mathrm{.}70.$ For the next $5$ years, the dividends are expected to grow at the rate of $13\mathrm{.}0\%$ per year $($based on projections in ValueLine$).$ Assume that the dividend in year $6$ is expected to grow from D$5$ at the rate of $9\mathrm{.}0\%,$ and all the subsequent dividends until year $15$ will grow at $9\mathrm{.}0\%.$ Assume that the dividend in year $16$ is expected to grow from D$15$ at the rate of $5\mathrm{.}0\%$ and all the subsequent dividends will grow by $5\mathrm{.}0\%$ as well, forever.

Required rate of return: assume that the risk$-$free rate is equal to $5\mathrm{.}0\%$ per year forever and that the market risk premium from $2024$ will stay constant forever as well. Assume the measure of economy$-$wide risk exposure M is associated with today will stay constant forever as well.

Based on the above information, do you conclude that M stocks are overvalued $($and thus people should sell them before the price drops$)$ or undervalued $($and thus people should quickly start buying M stocks$)?$ Explain why $($based on numbers and $1-2$ sentences$).$

Hint: If you cannot figure out the correct required rate of return, assume that rate to be equal to $13\%($obviously$,$ NOT the correct value$)$ for partial credit. CLEARLY state in your write$-$up whether you decided to use $13\%$ as the discount rate to get partial credit.

Your answer has to be number$-$driven. No $$feelings$,$intuitions$,$experiences$$ etc.