Question: This question is worth 7 marks. Please show any formulas that you are using and calculations An analyst gathers the following data: Expected rate of

This question is worth 7 marks. Please show any formulas that you are using and calculations An analyst gathers the following data: Expected rate of return on the market = 14% Current Dividend = $2 Growth rate in dividends = 6% per year Risk Free Rate = 8% Expected rate of return on stock X if you buy at current price = 16% Stock X's beta = 1.25 Using this data, is this stock underpriced or overpriced and by how much (in return)

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