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3. An analyst gathers or estimates the following information about a stock: - Current price per share: $15.5 - Current annual dividend per share: $1.6
3. An analyst gathers or estimates the following information about a stock: - Current price per share: $15.5 - Current annual dividend per share: $1.6 - Annual dividend growth for Years 1-3: 8% - Annual dividend growth for Years 4+: 3% - Required rate of return: 11% Based on the DDM, the stock is most likely: A. undervalued. B. overvalued. C. fairly valued.
Please Don't solve it in Excel.
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