16. LSP stock is priced at $80 in the market and $70 according to analysts. The stock is then O a) Undervalued O b) $ 7.81 O c) Overvalued O d) $ 9.64 O e) None of the above 17. You've just joined XYZ which've offered you two different salary arrangements. The first one is that you can have $95.000 per year for the next two years. however, the second one is that you can have $70.000 per year for the next two years. along with a $45.000 signing bonus today. The bonus is paid immediately. and the salary is paid at the end of each year. If the interest rate is 10 percent, which do you prefer? * O a. The first option O b. The second option c. Indifferent O d. Neither e None of the above 18. You are considering an investment in XYZ's stock. which is expected to 5 poin pay a dividend of $2.00 a share at the end of the year (D1 = $2.00) and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 6%. XYZ currently sells for $25.00 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? * O a) $32.32 O b) $78.00 O c) $27.32 O c) so O e) None of the above