Question: Calculate & Explain Question: - Below you will find various metrics and parameters to value two stocks A and B. These are actual securities, and

Calculate & Explain Question:

- Below you will find various metrics and parameters to value two stocks A and B. These are actual securities, and the current price is as of the close of business day October 26th, 2011. Given these metrics below, please render your opinion of value for each security, whether overvalued, undervalued or fair value, and why? assume Rm = 12% and Rf = 1.5%.

- Recalculate your answers similar to question #3 (i.e. arrive at a value for stocks A and B) but this time use the Sector Multiple to derive Stock A and Bs values. If your values differ from question 3, why?

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