Assume that you obtained information about the ABC company including the following issues: Actual share price
Fantastic news! We've Found the answer you've been seeking!
Question:
- Actual share price $14
- Estimated share price after one year $15
- the estimated company's beta 1.1
- Normally similar investors use S&P 500 as a benchmark.
- The estimated annual return on the S&P500 10%
- The yielding rate for the 90-days T-bill over the last 10 years 3%
As an investor, you should
1.Purchase this stock because it is overvalued
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: