Compute the ear for each investment choice

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1. Connecticut Water’s beta is 0.65, its DPO is 0.54, and it has a 0.045 growth rate. If it has a variable dividend and its current P/E is 25.9, is it over or under valued?

2. You have found three investment choices for a? one-year deposit: 9.1 % APR compounded? monthly, 9.1% APR compounded? annually, and 8.2% APR compounded daily. Compute the EAR for each investment choice.

3. Federated Investors has a beta of 1.25, and it has paid a $1.00 dividend for many years. If its current P/E is 13.1, is it over or under valued?

Reference no: EM131839760

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