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Which of the following might be interpreted as a signal that stock price is currently too An abnormally low dividend yield A high E/P ratio

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Which of the following might be interpreted as a signal that stock price is currently too An abnormally low dividend yield A high E/P ratio A low book value per share A low P/E ratio A stock has a beta of the stock is 1.25. The risk free rate is 5%-and the return on the market is 6%. The estimated return for the stock is 14%. According to the CAPM you should Sell because it is overvalued. Sell because it is undervalued. Buy because it overvalued. Buy because it is undervalued. Short because it is undervalued. The value of common stock will likely decrease if: the investment horizon decreases. the growth rate of dividends increases. the discount rate increases. dividends are discounted back to the present. Which of the following is correct? If estimated value > Market price, you should buy. If estimated value > Market price, you should sell. If estimated value

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