Question: quick answer and i will thumbs up The XYZ stock is trading at 40 dollars and the stock growth rate is 7%. The firm has

quick answer and i will thumbs up

The XYZ stock is trading at 40 dollars and the stock growth rate is 7%. The firm has announced in its report that the dividend in the next year is 0.8 dollars per share. If the risk free rate is 4%, the stock beta is 0.8, and the marker risk premium is 6.25%. The stock is....

Fairly Valued

Expensive

Cannot be determined using the given information.

Cheap

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