What is the intrinsic value of this stock

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LA Diversified Inc. recently paid its annual dividend ($3.00). Dividends have consistently grown at a rate of 3.80%. The stock has a beta of 0.88. The current risk-free rate is 2.40% and the market risk premium (RM - RF) is 8.50%. Assuming that CAPM holds, what is the intrinsic value of this stock?

Reference no: EM131065649

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