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Use the information below and the Twostage Growth Model to find Axis Capital’s intrinsic value. Forecast its cash flows from t+1 to t+3. If its current price is $37.54, is it over or under valued?
t 
t+1 
t+2 
t+3 
t+4 

Beta 
0.80 

ROE 
0.09 
0.08 
0.08 
0.08 

DPO 
0.37 
0.34 
0.34 
0.34 

Div 
$1.64 
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