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to complete this assessment. uestion 18 Given the following data of ABC Inc. Dividend just paid (Do) = $5 Dividend payout ratio (d) = 60%

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to complete this assessment. uestion 18 Given the following data of ABC Inc. Dividend just paid (Do) = $5 Dividend payout ratio (d) = 60% Return on Equity (ROE) = 10% Required rate of return (K) = 15% 1. Calculate the intrinsic value of ABC stock. [4 points) II. If ABC stock is trading at $40 in the market, is it overvalued or undervalued? Will you buy or sell it? [1 point For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial V 14px V EA 2 4 3 9 AB CB = = = = = = = X, 8 MI +B = [8] 3 (6) @ @ MacBook Air

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