An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimates, the value of Mandalays Inc.’s stock should be $78.54 per share, but Mandalays Inc.’s stock is trading at $99.25 per share on the New York Stock Exchange (NYSE). Considering the analyst’s expectations, the stock is currently:

Respuesta :

Answer:

The stock is overrated because his intrincis value, 78.54 is below his market price 99.25

This means it is preferable to sale the share before their value drops.

Explanation:

Intrinsic Value 78.54

Market Value 99.25