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Firm A has a beta of 1.2 and is paying out a constant dividend of $2 each year. The firm will continue to pay a

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Firm A has a beta of 1.2 and is paying out a constant dividend of $2 each year. The firm will continue to pay a dividend of $2 each year forever. The current risk-free rate is 1% and the market risk premium is 10%. The current market price of the firm is $14. What is the intrinsic value of the firm? Intrinsic value = Is the firm currently over or undervalued? The firm is currently

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