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PLEASE GIVE ENOUGH INFORMATION AND DETAILS After learning how to value a stock in his Corporate Finance class, Mark Stark decided to put his knowledge
PLEASE GIVE ENOUGH INFORMATION AND DETAILS
After learning how to value a stock in his Corporate Finance class, Mark Stark decided to put his knowledge into practice and use the constant growth rate model to value EI Tomate Feliz Co. He found that the company was severely undervalued. The stock was trading at $50 per share, but he valued it at $120 per share. Mark complained: "I thought that EI Tomate Feliz was a steal and bought as many shares as I could, but the price didn't go up. I have waited a year, and the price has not changed that much." What could have gone wrong with Mark's valuation? What can Mark do to mitigate pitfalls in valuation Step by Step Solution
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