5. Intercoastal Corporation recently paid a common stock dividend of $2.50 Analysts predict that the firm and its dividends will grow at a rate of 8% per year. Intercoastal has a beta of 1.35. The current risk-free rate of interest is 5.0% and the current return on the market is 13% what is the intrinsk value Intercoastal common stock? a) $127.20 c) $34.62 e) $100 b) $57.81 d) $114.50 6. Royal Hills Corporation pays 30% of its earnings to stockholders and retains 70% to finance growth. The firm recently paid a S320 common stock dividend. Investors require a return of 14% on Royal Hills common stock. If the fir common stock? m earns a return on equity of 10%, what should be the value of RoaH a) $73.70 ) $52 e) $65.30 b) $61.25 d) $48.9