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.