A computer analysis reveals that the best-fitting trend model is Yt - 9261

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A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571. 

Which conclusion is not correct?

A.   Few investments could match the astounding growth rate.

B.   The stock's true intrinsic value is $4.12.

C.   At the end of year 3 the stock price would be nearly $80.

D.   The absolute annual growth (in dollars per share) is increasing.

 
Solution Description

A computer analysis reveals that the best-fitting trend model is Yt = 4.12 e 0.987 t. The trend was fitted using year-end common stock prices for Melodic