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Walmart stock current trades at $130 on the NYSE. You estimate that Walmarts intrinsic value is $125. Target stock has a required rate of return
Walmart stock current trades at $130 on the NYSE. You estimate that Walmarts intrinsic value is $125. Target stock has a required rate of return of 5% while you estimate that Targets expected holding period return for one year is 6%. Based on this analysis, are either Walmart or Target considered a good buy?
- A. Only Walmart is a good buy
- B. Only Target is a good buy
- C. Both Walmart and Target are good buys
- D. Neither Walmart or Target is a good buy
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