Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 3% per year. The risk-free rate is 5%, and the expected return on the market portfolio is 14%. The stock has a beta of 0.65.

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

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