Question
Levi Strauss & Co (LEVI) has a current price of $13.40 per share. Analysts estimate that the price per share of LEVI one year from
Levi Strauss & Co (LEVI) has a current price of $13.40 per share. Analysts estimate that the price per share of LEVI one year from today will be $15. LEVI will pay a dividend of $0.50 one year from today. Currently the risk-free rate is 5%, the market risk premium is 6% and LEVIs Beta is 1.19. Based on this information, how is LEVIs price position relative to fair value?
Levi is undervalued
There is not enough information to answer this question
Levi is overvalued
Levi is fairly valued
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Financial Management Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
