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4. (10 points) You expect XYZ Company stock to pay a $2 dividend next year. In addition, you expect the price of the stock to

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4. (10 points) You expect XYZ Company stock to pay a $2 dividend next year. In addition, you expect the price of the stock to be $106 next year. You estimate that the Beta of XYZ is 1.5. The risk-free rate is 4%, and the expected return on the market portfolio is 7%. a. (6 points) The current price of the stock is $96. Calculate the intrinsic value of the stock and explain whether stock XYZ is underpriced or overpriced

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