Thomas is currently analyzing the following shares.

He believes that required rate of equity return is 13% per year. a) Evaluate potential mispricing from those 3 shares b) Explain further consideration when Thomas attempts to value those shares

Share A Share B Share C 4 2 0 3% 10% 0% 3% 5% Recent dividend paid ($) First dividend growth Second dividend growth First growth years Second growth years Price ($) 1 to 5 1 to 3 0% N/A N/A 20 5 to 100 4 to 10 60 12 Share A Share B Share C 4 2 0 3% 10% 0% 3% 5% Recent dividend paid ($) First dividend growth Second dividend growth First growth years Second growth years Price ($) 1 to 5 1 to 3 0% N/A N/A 20 5 to 100 4 to 10 60 12