You've collected the following information from your favorite financial website. 52-Week Price Hi 64.60 LO Div Yld % 19 PE Ratio 235.6 Net Chg 05 4780 70.28 139.13 145.94 17113 91.80 113.19 Stock (DM) Abbott 112 Ralph Lauren 2.50 IBM 6.30 Duke Energy 3,56 Disney 168 18 4.3 4.9 17 7196 Close Price 62.91 139.71 145.39 7430 77 709 23.8 176 15.5 96 20 10 According to your research, the growth rate in dividends for IBM for the next 5 years is expected to be 5 percent Suppose IBM meets this growth rate in dividends for the next five years and then the dividend growth rate fails to 3.5 percent indefinitely. Assume investors require a return of 10 percent on IBM stock a. According to the dividend growth model what should the stock price be today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) b. Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued? a. Current stock price b. Valuation