1. Use the information on the stock above to compute an estimate of its current price. Assume further that the stock’s expected dividend is $1.50 and the growth rate of dividends is 3.4%. 2. If the...

1. Use the information on the stock above to compute an estimate of its current price. Assume further that the stock’s expected dividend is $1.50 and the growth rate of dividends is 3.4%.

2. If the intrinsic value of a stock exceeds the market price of the stock, is the stock over- or undervalued? Explain.