Lehman & Company has $80.00 par-value preferred stock that pays an annual dividend of $14.00. The stock has a beta of 1.36, the risk-free rate is 2.40% and the market risk premium (RM - RF) is 7.50%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?

$111.11

$116.24

$118.18

$120.82

$112.98