Assume that you are an analyst who uses the CAPM to evaluate stocks. There is a firm that has ROE of 25%, a beta

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Assume that you are an analyst who uses the CAPM to evaluate stocks. There is a firm that has ROE of 25%, a beta of 1.12, the expected return on the market is 15%, the risk-free rate is 5%, and the firm has a dividend yield of 6%. At what dividend payout ratio will this firm appear to be undervalued? O Anything more than 59.2% O None of the answers listed here. O Anything less 59.2%.

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