If the price of SmileWhite Co. was $26.00 at the time of this evaluation process in year 2008, was the stock overpriced or underpriced security considering the intrinsic value obtained by the two-stage DDM. What should be the trading strategy based on the evaluation.
a. Stock underpriced, buy and hold
b. Stick overpriced, buy and hold
c. Stock overpriced, short selling yields profit
d. Stock underpriced, short selling yields profit