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Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per

Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year.

The firm always pays out 70% of net income as dividends and has 3 million shares of common stock outstanding. The required return is 8%.

What is the intrinsic value of the stock?

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