You now have the dividends in a worksheet.

Because MMM pays dividends quarterly, for each quarter calculate the per$-$centage change in the dividends. Now, calculate the compound quarterly growth rate of the dividends using the geomean function.

Now, annualize the quarterly dividend growth rate.

Calculate the intrinsic value of the stock using a $12\%$ required rate of return and the calculated annual growth rate. Use the sum of the most recent four dividends as DO$.$

Now assume that MMM$\text{'}$s dividend growth rate will remain the same for the next five years, and then fall to $75\%$ of its current rate. What is the value of the stock using the two$-$stage dividend discount model?

How does the calculated intrinsic value compare to the actual market price of the stock for each of the models used? Use an IF statement to display whether the stock is undervalued, overvalued, or fairly valued. Would you buy the stock at its current price?