$18$

Miltmar Corporation will pay a year$-$end dividend of $$4,$ and dividends thereafter are expected to grow at the constant rate of $5\%$ per year. The risk$-$free rate is $6\%,$ and the expected return on the market portfolio is $12\%.$ The stock has a beta of $0\mathrm{.}92.$

Required:

a$.$ Calculate the market capitalization rate. $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

$01$:$20$:$05$

Market capitalization rate

$\%$

b$.$ What is the intrinsic value of the stock? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Intrinsic value