The beta of a stock is 1.25, with the current T-bill at 2.45% and a...

80.2K

Verified Solution

Question

Accounting

The beta of a stock is 1.25, with the current T-bill at 2.45% and a market risk premium is 5.01%. The stock had a current growth rate of 3.5%, and estimated future dividend of $4.15, and currently sells for $62.23 a share. Is the stock over or under valued, and by what percent?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students