Question: Question 6 Q:2 Given the following data: Current Price (Po) = $95 Expected Price (P1) = $112 Expected Dividend (D1) = $3 Risk free rate
Question 6 Q:2 Given the following data: Current Price (Po) = $95 Expected Price (P1) = $112 Expected Dividend (D1) = $3 Risk free rate (Rp) = 4% Expected Market Return (Rm) = 13% Beta = 1.5 Calculate the a. Expected return b. Required return using Capital Asset Pricing Model (CAPM) c. Determine whether a stock is undervalued, overvalued, or properly valued
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