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Lethbridge Heavy Duty Mechanics, Ltd . is a publicly traded company that has $ 1 2 5 million of equity and 1 0 million common

Lethbridge Heavy Duty Mechanics, Ltd. is a publicly traded company that has $125 million of equity and 10 million common shares issued and outstanding. Net income was $8 million for the most recent fiscal year ended and there are no preferred shares outstanding. The company's shares closed at $17.50 on the last trading day. These shares are considered by investors to be:
Select one:
a. Over-valued because firms in this industry typically trade below $10
b. Highly value because its market to book ratio is greater than 1
c. Highly valued because it has not issued any preferred shares
d. Under-valued because its equity position is high at $150 million
e. Under-valued because its PE ratio is only about 20:1
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