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Estimated the the stock is fairly-overpriced or underpriced

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Reference no: EM132578159

You-are analyzing the stock of XYZ firm where its current stock price is 35$. The firm just paid an annual dividend of 0.10$ and it is expected tha 5% in the coming two years and then increase by 4% per year thereafter. You estimate that the required return of the stock is 10%. Estimated the the stock is fairly, overpriced or underpriced.

Reference no: EM132578159

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