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Stock PQR is expected to pay a dividend of $2 next year and then $4 for $ ears 2-5. If the stock currently trades at

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Stock PQR is expected to pay a dividend of $2 next year and then $4 for $ ears 2-5. If the stock currently trades at $14, would the dividend discount pricing model say to buy or sell this stock? Assume a required return rate of 11%. a. Sell - the stock is overvalued b. Buy - the stock is undervalued c. Do nothing - the stock is perfectly priced

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