and to $2.31 in year 3 . After that, you think dividends will grow at a constant 6% rate. a. Use the variable growth version of the dividend valuation model and a required return of 12% to find the value of the stock. doing the calculation? d. Suppose the stock's current market price is actually $32.17. Based on your analysis from part a, is the stock overvalued or undervalued? for \$55.10. Given that belief, along with the stock's current market price from part d, calculate the return that your friend expects to earn on the stock over the next three years. a. Using the variable growth version of the dividend valuation model and a required return of 12%, the value of the stock is $ b. The stock's expected selling price immediately after receiving the $2.31 dividend is $[ (Round to the nearest cent.) c. Using the IRR approach, the expected return on the stock over three years is d. If the stock's current market price is actually $32.17, then the stock is e. The return that your friend expects to earn on the stock over the next three years is \%. (Round to the nearest whole percent.) (Select from the drop-down menu.) \%. (Round to the nearest whole percent.) 
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