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13) Low Fly Airline is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of
13) Low Fly Airline is expected to pay a dividend of $7 in the coming year. Dividends are expected to grow at the rate of 15% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. The stock of Low Fly Airline has a beta of 3.00. The intrinsic value of the stock is 13) A) $50.00. B) $46.67. C) $56.00. D) $62.50
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