Question is below:

Chih_com, with a beta of 0.75 on its stock, is planning on paying a $4 dividend, and the dividends are expected to grow at the constant 4% rate ever}:f year. The T-bill rate is 4%, and the required return on the market index is 12%. Answer the following questions. a. What will be the required rate of return required by the investors investing on the company's stock? {Do not round intermediate calculations.) Market capitalization rate I I% b. The company's stock will have an intrinsic value of _ (Do not round intermediate calculations. Round your answet to 2 decimal places} Inln'nsic value