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Capital Investments Inc. is analyzing the value of a dividend-paying stock using the Dividend Discount Model (DDM). The stock is expected to pay dividends of

Capital Investments Inc. is analyzing the value of a dividend-paying stock using the Dividend Discount Model (DDM). The stock is expected to pay dividends of $5 per share annually, and the required rate of return for similar investments is 10%. If the dividend growth rate is estimated to be 3% per year, calculate the intrinsic value of the stock.

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