Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 4% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 12%. The stock has a beta of 0.75.

a. Calculate the market capitalization rate. (Do not round intermediate calculations.

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