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ii)MM Corporation (MMC) will pay a year-end dividend of $4, and dividends thereafter are expected to grow at 4% per year. The risk-free rate is

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ii)MM Corporation (MMC) will pay a year-end dividend of $4, and dividends thereafter are expected to grow at 4% per year. The risk-free rate is 5%, and the expected return on the market portfolio is 10%. The stock has a beta of 0.75. What is the intrinsic value of the MMC stock? (3 points)

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