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Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per
Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Interior Airline has a beta of 2. Using the constant growth model, the intrinsic value of the stock is __________.
$27.27
$30
$15.71
None of the above/below
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