assume target corp just paid a dividend of $2.72 this past year. also assume that target dividend is expected to grow at 15% in the next four years. after that, the growth rate in dividends is expected to level off to a perpetual 6%. finally, assume that the cost of equity for the stock of target is estimated at 8%. given these assumptions, what is the estimated value of the stock of target? if the stock trades at $230 in the stock market, would you consider the stock undervalued or overvalued?
