Miltmar Corporation will pay a year$-$end dividend of $$4,$ and dividends thereafter are expected to grow at the constant rate of $6\%$ per year. The risk$-$free rate is $6\%,$ and the expected return on the market portfolio is $12\%.$ The stock has a beta of $0\mathrm{.}86.$

Required:

a$.$ Calculate the market capitalization rate. $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Market capitalization rate

b$.$ What is the intrinsic value of the stock? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

$\backslash$table$[[$Intrinsic value