Question 1 Market Rate .078 Riskfree rate .016 A company has a beta of .90 and a fixed dividend of .24. Find its intrinsic value. If it is selling at $5.88, is it over valued or undervalued?

a. IV between $2.98 and $3.35, and the stock is over valued

b. IV between $2.98 and $3.35, and the stock is under valued

c. IV between $13.85 and $14.00, and the stock is over valued

d. IV between $13.85 and $14.00, and the stock is under valued