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Assume you ran a regression of all firms listed on the NYSE and arrived at the following OLS estimates. P/BV=0.88+0.82 payout+7.79 growth-0.41beta +13.81ROE. If a

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Assume you ran a regression of all firms listed on the NYSE and arrived at the following OLS estimates. P/BV=0.88+0.82 payout+7.79 growth-0.41beta +13.81ROE. If a firm has an actual P/BV of 4.12, the beta of 1.25. payout ratio of 0.4, ROE of 0.25, and growth rate of 0.15, is it overvalued or undervalued by the market? Undervalued Overvalued Valued Correctly

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