What if the forward dividend growth rate is more aggressivel

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Today Microsoft Corporation trades at $65.00/ shr. Your investment research shows an estimated dividend growth rate of 4.0% and the dividend is currently at $1.56/shr. The risk free rate is assumed to be 2.5% and the market's expected return is 6.9%.

Is the stock under- or overvalued at this price?

What if the forward dividend growth rate is more aggressively assumed at 4.7 % ?

Reference no: EM132030243

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