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An analyst gathers the following data on Stock x and the market: - Expected rate of return on the market =12% - Current Dividend =$2

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An analyst gathers the following data on Stock x and the market: - Expected rate of return on the market =12% - Current Dividend =$2 - Growth rate in dividends =6% per year - Risk Free Rate =5% - Expected rate of return on stock X if you buy at current price =15% - Stock X's beta =1.25 Using this data, is this stock under-priced or overpriced and what should the price of the stock be

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