How much could the market price rise before the stock

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Reference no: EM131078096

Your broker recommends that you purchase XYZ Inc. at $60. The stock just paid a $2.40 dividend which (like its per share earnings) is expected to grow annually at 8 percent. If you want to earn 12 percent on your funds, how much could the market price rise before the stock is no longer undervalued?

Reference no: EM131078096

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