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Overpriced underpriced correctly priced

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Reference no: EM132157879

You are currently thinking about investing in a stock valued at $22 per share. The stock recently paid a dividend of $2.30 and its dividend is expected to grow at a rate of 5 percent for the foreseeable future. You normally require a return of 15 percent on stocks of similar risk. Is the stock overpriced, underpriced, or correctly priced? (Round answer to 2 decimal places, e.g. 52.75.)

Current value of stock$ ( )

The stock is overpriced underpriced correctly priced at $22?

Reference no: EM132157879

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