18) Redhat Corporation is expected to pay a dividend of $1 in the upcoming year. Dividends are expected to grow at the rate of 5% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 13%. The stock of Redhat Corporation has a beta of 1.1. What is the intrinsic value of Redhat's stock?

a.7.52

b.11.24

c.11.80

d.8.36