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If a company makes a profit after tax of sh . 5 0 0 , 0 0 0 , 0 0 0 , distributes sh

If a company makes a profit after tax of sh.500,000,000, distributes sh.13,000,000 to its
shareholders. The dividend per share in the course of the year is sh.4.The cost of equity in
this company is 14%. Currently the share is trading at Sh.280 in the stock market. Is this
share overvalued or undervalued?

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