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a) The current stock price is P0=$10.00. The expected future dividend and price are D1=$1.50 and P1=$11.50. What is the expected holding period return? b)

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a) The current stock price is P0=$10.00. The expected future dividend and price are D1=$1.50 and P1=$11.50. What is the expected holding period return? b) The current stock price is $40.00. The company just paid a dividend of D0= $2.00. The dividend is expected to grow at a rate g=3%. The company has a discount rate (market capitalization rate) of R=8%. Is the stock under-valued, over-valued, or correctly valued in the market? c) You buy the stock at P0=$40.00 and the price immediately corrects to its fair value. If you sell the stock in one-year at t=1 at its fair market value, what is your expected holding period return

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