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Irvine Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 8%
Irvine Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 8% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 17%. The stock of Irvine Development Corporation has a beta of 0.75. Using the constant-growth DDM, find the intrinsic value of the stock.
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