Ticker symbol: MMM

Price close at fiscal year end: $ 150.64

NAICS code: 322220

Dividend payout ratio: 39.58%

Dividend yield at fiscal year end: 2.722%

Dividends per share: $ 4.10

ROE: 41.28%

Common equity total: $ 12,048 million

Preferred stock total: 0

Long term debt total: $ 11,079 million

Interest expense: $ 180 million

P/E: 20.36

Tax rate: 29.05%

FCF/share for the next year: $ 3.935

Common shares outstanding for the next year: 609.33 million

The growth rate for free cash flow is 8.00%

Calculate:

1. The growth rate g

2. The cost of equity k

3. The valuation of the stock using the DDM

4. Total capital

5. Weight of debt

6. Weight of equity

7. Cost of debt

8. The value of the WACC

9. The value per share using the corporate valuation model

10. Based on the DDM is the stock overvalued or undervalued and by how much

11. Based on the corporate valuation model is the stock overvalued or undervalued and by how much.