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Firm X will pay a year-end dividend of $1.75, and dividends thereafter are expected to grow at a constant rate of 2% per pear. The
Firm X will pay a year-end dividend of $1.75, and dividends thereafter are expected to grow at a constant rate of 2% per pear. The risk-free rate is 2.5%, and the expected return on the market portfolio is 10%. the stock has a beta of 1.20. What is the intrinsic value of this stock?
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