Question: 9 . Using the abnormal earnings growth ( AEG ) model, an analyst estimates the intrinsic value of Borden to be $ 6 3 per

9. Using the abnormal earnings growth (AEG) model, an analyst estimates the intrinsic value of Borden to be $63 per share at 12/31/2024, while the market price of the stock was $51. Which of the following is NOT a possible explanation for this difference?
a. The discount rate used in the AEG model was too low.
b. The terminal/continuing growth rate used in the AEG model was too low.
c. The forecasted earnings in the AEG model were too high.
d. The markets estimate of the companys beta is higher than the analysts estimate of beta.

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