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4. Max Corp will pay a year-end dividend of $4, and the dividends thereafter are expected to grow at a constant rate 014% per year.

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4. Max Corp will pay a year-end dividend of $4, and the dividends thereafter are expected to grow at a constant rate 014% per year. The risk-free rate is 4%, and expected return on the market portfolio is 12%, The stock has a beta of 0.75. What is the intrinsic value of the stock? (6pts)

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