问题如下:
5. Based on the third approach (the H-model), the stock is:
选项:
A.undervalued.
B.fairly valued.
C.Overvalued.
解释:
C is correct.
Using the H-model
Where
D0=0.175
R=0.0872
H=4
gS=0.14
gL=0.07
The market price is C$17, which is greater than C$13.7355. So, the stock is overvalued in the market.
老师好 虽然题中提到是八年 但就从题干来看the growth rate would decline linearly from 14% in the first year to $7in the ninth year. 因为是从第1 年到第九年,所以图中切一刀切在时间点8 上是吗? 该题的图该怎么画?谢谢。