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Use the following information to answer questions 14 - 15. XQV's stock is trading at...

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Use the following information to answer questions 14 - 15. XQV's stock is trading at $40. Earnings per share are expected at E1=$5.00; all will be paid out as dividends. Valuing the stock as a perpetuity P0=E1/r, the expected return is 12.5%. The risk-free rate is 6%; the market risk premium is 8%. XQV's beta is 0.875. Question 14 1 pts The stock is overpriced fairly priced underpriced

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