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Spartan Incorporated is trading at a P/E multiple of 16. You have calculated the firms expected growth to be 5%, cost of capital to be

Spartan Incorporated is trading at a P/E multiple of 16. You have calculated the firms expected growth to be 5%, cost of capital to be 10%, and payout ratio to be 70%. According to your calculations, is Spartan properly valued? If not, would you buy or sell?

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