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Given the following data of ABC Inc. Dividend just paid (Do) = $5 Dividend payout ratio (d) = 60% Return on Equity (ROE) = 10%

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Given the following data of ABC Inc. Dividend just paid (Do) = $5 Dividend payout ratio (d) = 60% Return on Equity (ROE) = 10% Required rate of return (K) = 15% 1. Calculate the intrinsic value of ABC stock. [4 points) II. If ABC stock is trading at $40 in the market, is it overvalued or unde Given the following data of ABC Inc. Dividend just paid (Do) = $5 Dividend payout ratio (d) = 60% Return on Equity (ROE) = 10% Required rate of return (K) = 15% 1. Calculate the intrinsic value of ABC stock. [4 points) II. If ABC stock is trading at $40 in the market, is it overvalued or unde

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