What should the stock price be today?

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52-Week P Show more Youve collected the following information from your favorite financial Web site. 52-Week Price 52-Week Price Stock (Div) Div Yld % PE Ratio Close Price Net Chg Hi Lo Stock (Div) Div Yld % PE Ratio Close Price Net Chg 77.40 10.43 Palm Coal 0.36 2.6 6 13.90 0.24 55.81 33.42 Lake Lead Grp 1.54 3.8 10 40.43 0.01 131.00 69.85 SIR 2.35 2.6 10 89.04 3.07 50.24 13.95 DR Dime 0.80 5.2 6 15.43 0.26 35.00 20.74 Candy Galore 0.32 1.5 28 ?? 0.18 According to your research the growth rate in dividends for SIR for the next five years is expected to be 21.0 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require an 13 percent return on SIR stock. Requirement 1: According to the dividend growth model What should the stock price be today? (Do not include the dollar sign ($). Enter rounded answer as directed but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g. 32.16).) Current stock price $ Requirement 2: Based on these assumptions is the stock currently overvalued undervalued or correctly valued? (Click to select)UndervaluedOvervaluedCorrectly valued Show less