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Public Store's next dividend is expected to be $2 and the current price of a share is $40. The expected price at the end of
Public Store's next dividend is expected to be $2 and the current price of a share is $40. The expected price at the end of a year is $42. The risk free interest rate is 3%, market return is 10% and ABC has a beta of 0.8. Its HPR is and its required return is _____. Is it overprice or under- priced according the information provided and why? 10% and 11% O 11% and 10% O 10% and 8.6% O None of the above 1 pts Following the last problem: this stock is O over priced under-priced O fairly priced none of the above
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