Question: QUESTION 14 5 points B C D E 2 The stock of Gamma is currently selling for $32.78 3 Earnings per share in the coming

QUESTION 14 5 points B C D E 2 The stock of Gamma is currently selling for $32.78 3 Earnings per share in the coming year is expected to be $4.33 4 The company has a retention rate of 76.0% The return on equity (ROE) for the firm is 16.5% The situation is expected to continue indefinitely. 7 Assume the current market price of the stock reflect its intrinsic value as computed using 8 the constant growth DDM. 9 What is the approximate PVGO and is the stock undervalued or overvalued? O a. Approximate PVGO is $5.27 and is Overvalued. Ob. Approximate PVGO is -$5.27 and is Overvalued. c. Approximate PVGO is $4.75 and is Undervalued. d. Approximate PVGO is $5.27 and is Undervalued

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