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Tangshan China's stock is currently selling for $160,00 per share and the firm's dividends are expected to grow at 5 percent indefinitely. In addition, Tangshan

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Tangshan China's stock is currently selling for $160,00 per share and the firm's dividends are expected to grow at 5 percent indefinitely. In addition, Tangshan China's most recent dividend was $5.50. If the expected risk free rate of retum (RA) is 3 percent, the expected market return (Rm) is 8 percent, and Tangshan has a beta of 1.2, Tangshan's stock would be (Hint: Cost of equity can be computed using CAPM which is Rf + beta (Rm-RF)) overvalued O undervalued not enough information to tell O properly valued

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