Question $2$

$6$ pts

Tmanee $0\mathrm{.}136$ r riskfree ${?}^{0\mathrm{.}016}$ Round your answers to three decimal places. Pick the answer closest to yours.

This company has paid a annual dividend of $$0\mathrm{.}16$ for many years. Determine whether this company's stock is over or under valued. Its beta is $0\mathrm{.}65.$ Its trailing $\frac{P}{E}$ is $8\mathrm{.}2.$

$$ P$/$E is $8\mathrm{.}900$; stock is under valued

P$/$E is $7,600,$ stock is over vatued

P$/$E is $10\mathrm{.}638$ ; stock is undervalued

$$ Cannot be determined using onty the inlo provided

None of the answers is correct