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Smith and Daughter Inc has a beta of 0.9, the risk-free rate is 3.2%, and the expected market risk premium 5%. Brady Enterprise expected return

Smith and Daughter Inc has a beta of 0.9, the risk-free rate is 3.2%, and the expected market risk premium 5%. Brady Enterprise expected return is 8%. a. Calculate the required return for Brady Enterprise. b. Comparing expected and required return, determine whether Brady Enterprise is over/underpriced and what must happen to the price of the stock.

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