Determine the required rate of return for chase

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Look up the beta coefficient for JP Morgan Chase. In addition, look up the present 10 year t-Note rate. Assuming a 5.6 percent equity risk premium, determine the required rate of return for Chase.

Using the required rate of return, determine what you think Chase is worth to you (intrinsic value) if you assume a 6.65 percent growth rate.

You need to use the dividend discount model.

Finally, look up the price of Chase and determine if it is overvalued or undervalued.

Reference no: EM131085598

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