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Stock A recently paid $3 dividend. Dividend growth rate is 7%. Rate of return on stock A expected by financial analyst is 13%. The stock's

Stock A recently paid $3 dividend. Dividend growth rate is 7%. Rate of return on stock Aexpected by financial analyst is 13%. The stock's beta is 0.85. risk-free rate and marketreturn are 5% and 11% respectively. Show that the stock is under- or over-priced.

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