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Is the stock currently over or under-priced

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Reference no: EM132347970

You obtained the following information for the TTR stock:

Market price per share at t=0, P0, is$52.

Expected price per share at t=1, E(P1), is $60.

Expected dividend per share during this time period, E(D1), is $1.5.

RF=.05

Beta for the stock=1.4

Market risk premium (RM-RF)=.08

Is the stock currently over- or under-priced?

Reference no: EM132347970

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