It is possible that efforts to decrease translation exposure may result in an increase in transaction exposure

What are the three levels of any location decision?

Hatter Enterprise paid a dividend last year of $3.25, which is expected to grow at a constant rate of 7%. Hatter has a beta of 1.5 and their stock is currently selling for $62. If the market risk premium is 6% and the risk-free rate is 3%, should you purchase Hatter's stock?

A) No, because it is overvalued $7.55 B) Yes, because it is undervalued $7.55 C) No, because it is overvalued $18.95 D) Yes, because it is undervalued $18.95