Are stocks an obvious buy compared to current market price

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Reference no: EM13203840

Given the following additional data:
HPG T CSCO
5 year expected dividend growth rate(%):
8.44 4.04 4.68
Long term growth rate after 5 years (%) 5.5 2.0 5.5

a) Using the 2 step growth model, calculate the price of the 3 stocks.
b) Are any of the stocks an obvious buy compared to the current market price?
c) If you had a stock selected for part b, explain where the analysis may have gone astray.

Reference no: EM13203840

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