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How does the justified price you computed compare to the

Question: Select a company from Yahoo! Finance or another online source that would be of interest to you. Using the historical and forecasted data reported in the source you select, along with one of the valuation techniques described in this chapter, calculate the maximum (i.e., justified) price you'd be willing to pay for this stock. (For this problem, use a market rate of return of 8%, and, for the risk-free rate, use the latest three-month Treasury bill rate.)

a. How does the justified price you computed compare to the latest market price of the stock?

b. Would you consider this stock to be a worthwhile investment candidate? Explain.

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Accounting Basics: How does the justified price you computed compare to the

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