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The common stock of Telliland Aviation (TA) is selling for 65.50/share when analysts consensus opinion is that the intrinsic value is 72.00/share. If the (annual)
The common stock of Telliland Aviation (TA) is selling for 65.50/share when analysts consensus opinion is that the intrinsic value is 72.00/share. If the (annual) required rate of return for TA is 7.8%, Compute the return from convergence and the expected return if the price converges to the intrinsic value in 9 months and in 18 months.
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