An analyst gathers the following data Expected rate of return on the market 14% Risk...
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An analyst gathers the following data Expected rate of return on the market 14% Risk Free Rate = 3% Stock x's beta - 125 You do further research and determine that the current market price of the stock 6 $21.67 and it has a current dividend of 2.50. The company has committed to increase the dividend by 4% every year in the future is this stock overvalued or undervalued and what should the price Del CAPM theory holds
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