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Bank of Nova Scotia's (BNS) common stock is trading at $170. The last known dividend Do is $3.5. Dividends are expected to grow at a
Bank of Nova Scotia's (BNS) common stock is trading at $170. The last known dividend Do is $3.5. Dividends are expected to grow at a rapid rate of 5% over the next two years and a constant rate of 1.5% after that. The required rate of return on BNS's common shares is 3%. Based on the dividend discount model valuation method, the common shares of BNS are: Select one: a. Undervalued
b. Fairly Valued
c. Overvalued
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