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1. According to the information in the table given below, fill in the blanks with correct option: Moderate Risk-Profitability / Low Risk-Profitability / High Risk-Profitability
1. According to the information in the table given below, fill in the blanks with correct option: Moderate Risk-Profitability / Low Risk-Profitability / High Risk-Profitability (20p) Asset Maturity Financing Maturity Long Term Short Term Short Term 1(?) 2(3) Long Term 3(?) 4(?) 2. Delphi Products Corporation currently pays a dividend of $2 per share, and this dividend is expected to grow at 15% percent annual rate for many years to come. The corporation has found an index of systematic risk of 1.60. Short-term Treasury securities rate 10% and the expected return on the market portfolio is 14%. What will happen to the intrinsic value per share? If the stock is currently selling for $187. is this stock overvalued or undervalued and why? (25p)
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