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Scoop, Inc., is the sole manufacturer of brittle building material. Assume that the company s common stock can be valued using the constant dividend growth
Scoop, Inc., is the sole manufacturer of brittle building material. Assume that the companys common stock can be valued using the constant dividend growth model. You expect that the return on the market will be percent and the riskfree rate is percent. You have estimated that the dividend one year from now will be $ the dividend will grow at a constant percent, and the stocks beta is The common stock is currently selling for $ per share in the marketplace. Is the companys common stock overpriced, underpriced, or fairly priced?
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