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company recently paid its annual dividend of $3, and reported an ROE of 15%. The firm pays out 50% of its earnings as dividends. The

company recently paid its annual dividend of $3, and reported an ROE of 15%. The firm pays out 50% of its earnings as dividends. The stock has a beta of 1.28. The current risk-free rate is 2.6% and the market return is 9.6%. Assuming that CAPM holds, what is the intrinsic value of this stock?

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