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Given the following data: Current Price (P 0 ) = $95 Expected Price (P 1 ) = $112 Expected Dividend (D 1 ) = $3
Given the following data:
Current Price (P0) = $95
Expected Price (P1) = $112
Expected Dividend (D1) = $3
Risk free rate (Rf) = 4%
Expected Market Return (Rm) = 13%
Beta = 1.5
Calculate the
- Expected return
- Required return using Capital Asset Pricing Model (CAPM)
- Determine whether a stock is undervalued, overvalued, or properly valued
urgent
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