What is the intrinsic value of stock

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Your broker has recommended that you purchase stock in ZZZ-Best,Inc. She estimates that the 1-year target price is $64.00, andZZZ-Best consistently pays an annual dividend of $13.00. Analystsestimate that the stock has a beta of 1.12. The current risk-freerate is 2.70% and the market return (RM) is 12.40%. Assuming that CAPM holds, what is the intrinsic value of this stock?

Reference no: EM131179582

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