Assume you ran a regression of all firms listed on the NYSE and arrived at the following OLS estimates. P/BV=0.88+0.82 p

[answerhappygod]

Assume you ran a regression of all firms listed on the NYSE and
arrived at the following OLS estimates. P/BV=0.88+0.82 payout+7.79
growth-0.41beta +13.81ROE. If a firm has an actual P/BV of 11.23,
the beta of 1.25, payout ratio of 0.4, ROE of 0.25, and growth rate
of 0.15, is it overvalued or undervalued by the market?
1.) Valued Correctly
2.) Undervalued
3.) Overvalued