What is the intrinsic value of the stock

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Reference no: EM131021485

Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 7% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 16%. The stock has a beta of 0.75. Required: What is the intrinsic value of the stock? (Round your answer to 2 decimal places.)

Reference no: EM131021485

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