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2) (25 points) Indicate whether each one of the following stocks is correctly priced, underpriced or overpriced if the risk-free rate of return is 4.3

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2) (25 points) Indicate whether each one of the following stocks is correctly priced, underpriced or overpriced if the risk-free rate of return is 4.3 percent and the market risk premium is 8.8 percent? 3) (25 points) General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital. Market price per share of common stock $50(7,200 shares outstanding) Market value of long-term debt is $980 per bond ( 150 bonds issued at $1,000 par) Tax rate is 20% What is the weighted average cost of capital using market value weights

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