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Percent for the foreseeable future

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You are currently thinking about investing in a stock valued at $23 per share. The stock recently paid a dividend of $2.60 and its dividend is expected to grow at a rate of 6 percent for the foreseeable future. You normally require a return of 16 percent on stocks of similar risk. Is the stock overpriced, underpriced, or correctly priced?

Reference no: EM132386272

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