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A B C ' s stock is currently valued in the market at $ 1 0 0 . You expect the price to be $

ABC' s stock is currently valued in the market at $100. You expect the price to
be $110 in 1 year. ABC pays 1% dividend. If beta of ABC is 1.5, risk - free rate
is 3%, and the market risk premium is 6%. What is the expected return and
required return? is it overvalued or undervalued?
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