1. You are supposed to analyze the price of Tyson Foods Class A (ticker: TSN) stock TODAY:

ValueLine.com projects that next years annual dividend for TSN (D₁) will be $1.86. For the next 5 years, the dividends are expected to grow at the rate of 7.0% per year (based on projections in ValueLine). Assume that the dividend in year 6 is expected to grow from D₅ at the rate of 6.0%, and all the subsequent dividends until year 10 will grow at 6.0%. Assume that the dividend in year 11 is expected to grow from D₁₀ at the rate of 5.0% and all the subsequent dividends will grow by 5.0% as well, forever.

Required rate of return: assume that the risk-free rate is equal to 4.5% per year forever and that the market risk premium from 2022 will stay constant forever as well. Assume the measure of economy-wide risk exposure TSN is associated with today will stay constant forever as well.

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