(Answered) The question asks to use the dividend discount model in

Finance

The question asks to use the dividend discount model in calculating the WACC. To determine the DDM Dividend per share (2.50)/Discount Rate (2%-4%=1.92%)-Dividend Growth Rate (4%)= 1.84 so 2.50/1.84%=135.87. Is 135.87 greater than the current price 50.00 then the stock is undervalued. Correct?

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