Question: After using the constant growing dividend method to value a stock, it is found that the valuation is equal to the current price. What conclusion
After using the constant growing dividend method to value a stock, it is found that the valuation is equal to the current price. What conclusion can be made about the stock relative to price?
The stock is overvalued.
The stock is undervalued.
The stock is properly valued.
The value of the stock cannot be determined.
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