Is the stock underpriced-overpriced or correctly priced

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The current market price of a share of common stock is $68, The most recent dividend paid on the stock is $6. The dividends are expected to grow at a constant rate of 7% per year forever. The required rate of return on the common stock is 16%. Is the stock underpriced, overpriced or correctly priced?

Reference no: EM131529873

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