Multiple Choice
A stock recently paid a dividend of $3 per share. Its growth rate is expected to be 8%. Investors require a 10% return. The stock is selling in the market for $140. What is this stock worth and is the stock undervalued or overvalued?
A) $162; undervalued
B) $162; overvalued
C) $150; undervalued
D) $150; overvalued
Correct Answer:
Verified
Correct Answer:
Verified
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