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3. Mountain View Corporation common stock has a par value of $25 and recently paid a dividend of $3.16 per share. The firm's dividends have

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3. Mountain View Corporation common stock has a par value of $25 and recently paid a dividend of $3.16 per share. The firm's dividends have grown from $1.50 to $3.16 over the past 9 years, which also reflects the expected growth in dividends for the indefinite future. The stock is selling for $40 and you think a reasonable required rate of return is 16%. What is the stock's intrinsic value? a) $21.43 b) $46.58 c) $39.50 d) $42.92 e) $17.21

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