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ABC Corp. will issue a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 5% per year. The

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ABC Corp. will issue a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 5% per year. The risk-free rate is 5%, and the expected return on the market portfolio is 12%. The stock has a beta of 0.65. a. Calculate the market capitalization rate. Please show work. b. What is the intrinsic value of the stock? Please show work

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