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You estimate the intrinsic value per share of General Electric (GE) at $25.00. The current market price per share is $20.75. Suppose you buy shares

You estimate the intrinsic value per share of General Electric (GE) at $25.00. The current market price per share is $20.75. Suppose you buy shares of GE under the impression that the stock will eventually trade up to your estimate of intrinsic value. If the unobservable, true intrinsic value of GE stock is $24.25 per share, what is the true mispricing, in dollars, to be earned on the trade if the shares were indeed sold for $25.00 per share?

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