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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 14 percent and the risk-free rate is 6 percent. You have estimated that the dividend one year from now will be $3.40, the dividend will grow at a constant 6 percent, and the stocks beta is 1.50. The common stock is currently selling for $30.00 per share in the marketplace. Is the companys common stock overpriced, underpriced, or fairly priced?

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