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You've collected the following information from your favorite financial website. (The number next to the...

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Accounting

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You've collected the following information from your favorite financial website. (The number next to the stock name is DO) 52-Week Price HI 77.40 LO 10.43 PE Ratio 6 Close Price 13.90 DIV Yid % 26 3.8 31 5.2 Net Chg -0.24 -0.01 3.07 -0.26 33.42 Stock (DIV Palm Coal 0.36 Lake Lead Grp 1.54 SIR 275 DR Dime 0.80 Candy Galore 0.32 10 55.81 131.08 50 24 70.25 13.95 10 6 40.43 8912 15.43 ?? 35.00 20.74 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 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 575 percent indefinitely. Assume Investors require a return of 15 percent on SiR stock, Requirement 1: According to the dividend growth model, what should the stock price be today? (Do not round 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)

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