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CentralWood is a movie company, and it is expected that it will pay dividends to stockholders at $3 per share in one year from now.

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CentralWood is a movie company, and it is expected that it will pay dividends to stockholders at $3 per share in one year from now. The market expects CentralWood's revenue will grow at 7% per year, but due to increasing costs, its profit will only grow at 5% per year in the future. The discount rate for valuing its stock is 9%. Using this information, how much (\$) is its stock price in the market now according to the Gordon Growth Model? 75 150 33.33 Not enowgh information to compute the price. Alset corp. is a automobile company. In the recent year, its total profits is $100 million, and it has 10 million shares of stock held by stockholders. Alset's current stock price is $300 per share. The average PE ratio in the automobile industry is around 15. According to this information only, which of the following is most accurate? Alset's PE ratio is 10 Investors are willing to pay 30 dollars for each $1 of earnings from Alset. According to PE ratio analysis, Alset's stock is undervalued All of the above are correct Question 10 0/0.4 pts Continue with the previous question. Assuming that Alset's PE ratio would move back to the industry average, then its stock price would not change increase by $15 per share decrease by $15 per share decrease by $150 per share

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