Share is overvalued and undervalued or properly valued

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Reference no: EM131349133

X shares are expected to pay a dividend of €1.2 at the end of each of the next two years, respectively.

The analyst estimates: the required rate of return to be 7%; the expected price at the end of this 2-year holding period to be €28.00. The current price is €27.00.?

Calculate the value of the shares today. Determine whether X share is overvalued, undervalued, or properly valued?.

Reference no: EM131349133

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