The stock undervalued or overvalued

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Reference no: EM132036840

Company A’s dividends are expected to grow at 5% indefinitely. The required rate of return is 9%. The company just paid a $1 dividend.

a. What is the fair market price of its stock today?

b. If the current market price is $ 26.50, is the stock undervalued or overvalued?

c. What is the price of its stock a year from now?

Reference no: EM132036840

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