The required rate of return for Easy is 5%+1.25(6%)=12.5%. The required return is greater than the estimated return, so the stock is overvalued. Brava's required rate of return is 5%+1(6%)=11% (because the beta is 1.0, the return is the same as the market). The required return is less than the estimated return, so the stock is undervalued.
发表于 2007-10-28 20:08
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