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5. Intrinsic values and stock prices An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value

5. Intrinsic values and stock prices

An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.s stock should be $28.95 per share, but Mandalays Inc.s stock is trading at $33.58 per share on the New York Stock Exchange (NYSE). Considering the analysts expectations, the stock is currently:

in equilibrium

overvalued

undervalued

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