QUESTION $15$

Redhat Corporation is expected to pay a dividend of $$1$ in the upcoming year. Dividends are expected to grow at the rate of $5\%$ per year. The risk$-$free rate of return is $4\%,$ and the expected return on the market portfolio is $13\%.$ The stock of Redhat Corporation has a beta of $1\mathrm{.}1.$ What is the intrinsic value of Redhat's stock?

$$ a$.8\mathrm{.}36$

b$.11\mathrm{.}24$

c$.11\mathrm{.}80$

d$.7\mathrm{.}52$