2. A company that has 400,000 share outstanding is currently selling at $36 per share. Your residual earnings model forecasts a valuation for the company of $20,000,000. What recommendation regarding the stock would you most likely make to your clients? a. Buy b. Hold C. Sell d. None of the above 3. Which of the following companies would an investor feel is priced most reasonably? a. M/V = $5 billion B/V = $3 billion b. M/V = $3 billion B/V = $1 billion c. M/V = $8 billion B/V = $2 billion d. M/V = $9 billion B/V - S4 billion