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Nagel Equipment has a beta of 0.88 and pays $10 dividend forever and its stocks is currently selling at $100. The T-bond rate is 5.25%.

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Nagel Equipment has a beta of 0.88 and pays $10 dividend forever and its stocks is currently selling at $100. The T-bond rate is 5.25%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future return on the market to be 13.75%. Using the SML, by how much is Nagel's stock currently over, under, or fairly-valued and why? Also draw the SML for Nagel and show how is its stock over, under, or fairly-valued

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