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If the actual stock price is $50, which of the following might be a valid reason...

  1. If the actual stock price is $50, which of the following might be a valid reason for the large discrepancy between the predicted stock price from above and the actual stock price of $35?
    1. The market expects the company to grow at a faster rate than the internal growth rate.
    2. The market expects the company to grow at a slower rate than the internal growth rate.
    3. The market requires a higher return than the 10% you used to find the stock price?
    4. The company is doing very poorly.
    5. The company is doing very well.
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