Find the intrinsic value of the stock that pays a dividend of $$1\mathrm{.}75$ and has a growth rate of $10\mathrm{.}5\%$ for $4$ years then it stabilizes at a long$-$run growth rate of $4\%.$ The stock has a

Beta of $.64,$ the risk free rate is $3\mathrm{.}5\%$ and the market return is $6\mathrm{.}44\%.$

A$.$ $$83\mathrm{.}38$

B$.$ $$137\mathrm{.}57$

C$.$ $$159\mathrm{.}01$

D$.$ $$167\mathrm{.}14$

QUESTION $36$

Use the corporate valuation model to find the intrinsic value of a firm with a long$-$run growth in FCF of $5\mathrm{.}25\%$ and a WACC of $14\mathrm{.}33\%.$ The firm has $$10$ million in debt and

preferred stock and has $4\mathrm{.}1$ million shares of common stock. The FCF for the first $4$ years are $($in millions of dollars$)$: $-$$$8,$$$5\mathrm{.}25$$$15\mathrm{.}75,$$$25\mathrm{.}44.$

A$.$ $$45\mathrm{.}13$

B$.$ $$84\mathrm{.}13$

C$.$ $$96\mathrm{.}36$

D$.$ $$110\mathrm{.}67$

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