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14. LSP stock is priced at $50 in the market and $60 according to analysts. The stock is then O a) Undervalued b) Overvalued O
14. LSP stock is priced at $50 in the market and $60 according to analysts. The stock is then O a) Undervalued b) Overvalued O c) Fair d) $50.16 e) None of the above 15. A stock is expected to pay a dividend of $0.50 at the end of the year (i.e., D1 = 0.50). Its dividend is expected to grow at a constant rate of 9 percent a year, and the stock has a required return of 12 percent. What is the expected price of the stock four years from today? * O a $ 5.46 O b) S 10 O c) $13.11 O d) $12.25 e) None of the above
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