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You ve collected the following information from your favorite financial website. 5 2 - Week Price Stock ( Dividend ) Dividend Yield % PE Ratio
Youve collected the following information from your favorite financial website.
Week Price Stock Dividend Dividend Yield PE Ratio Close Price Net Change
Hi Lo
Acevedo
Georgette, Incorporated
YBM
Manta Energy
Winter Sports question mark
According to analysts, the growth rate in dividends for YBM for the next five years is expected to be percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to percent, indefinitely. Assume investors require a return of percent on YBM stock.
According to the dividend growth model, what should the stock price be today?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued?
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