You are analyzing a common stock with a beta of 1.5. The risk-free rate of interest is 5 percent and the market risk premium is 10 percent. If the stock's expected return based on its market price is 19.5%, 1. the stock is overvalued since the expected return is above the SML.

2. the stock is undervalued since the expected return is above the SML.

3. the stock is correctly valued since the expected return is above the SML.

4. the stock is overvalued since the expected return is below the SML.

5. the stock is undervalued since the expected return is below the SML.

Waterway company’s record of transactions for the month of april was as follows. purchases sales april 1 (balance on hand) 672 @ $6.00 april 3 560 @ $11.00 4 1,680 @ 6.08 9 1,568 @ 11.00 8 896 @ 6.41 11 672 @ 12.00 13 1,344 @ 6.51 23 1,344 @ 12.00 21 784 @ 6.61 27 1,008 @ 13.00 29 560 @ 6.79 5,152 5,936 (a) calculate average-cost per unit. (b) assuming that periodic inventory records are kept in units only, compute the inventory at april 30 using lifo and average-cost. (c) assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) fifo and (2) lifo. (d) compute cost of goods sold assuming periodic inventory procedures and inventory priced at fifo.