Financial Management

1:

If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable conclusion?

A.

The stock has a low level of risk.

B.

The stock offers a high dividend payout ratio.

C.

The market is undervaluing the stock.

D.

The market is overvaluing the stock.

 

Answer : C

Explanation :

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Option: A

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