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Stock A and stock B have similar characteristics. You believe they should share the same discount rate. Stock B is trading at $50 right now,

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Stock A and stock B have similar characteristics. You believe they should share the same discount rate. Stock B is trading at $50 right now, and it is expected to pay $2 dividend per share NEXT year. And this dividend is expected to grow by 5% forever. Now stock A pays constant dividend at $1.8 per share forever, and its price is trading at $30 per share. So Stock A is: Overvalued Undervalued Fair valued

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