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Consider the information below about the following three equity securities. Argonaut, Bliss and Cargo: Argonaut (ARG) Bliss (BLS) Cargo (CRG) Market Price 18 15 25
Consider the information below about the following three equity securities. Argonaut, Bliss and Cargo: Argonaut (ARG) Bliss (BLS) Cargo (CRG) Market Price 18 15 25 Number of Shares 10 15 Cash 5.5 30 Debt (market value) 50 50 50 EBITDA 20 36 21 15 Based on the information above, you can conclude that Argonaut (ARG), which is currently trading in the market at a price of $18, is: (a) More information is needed. (b) Overvalued. (c) Undervalued. (d) About fairly priced
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