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Rand Inc. has a beta of 1.7. The company has just paid a quarterly dividend of $0.32. Rand's dividends will grow by 4% for the

Rand Inc. has a beta of 1.7. The company has just paid a quarterly dividend of $0.32. Rand's dividends will grow by 4% for the next 4 quarters, and then grow by 2.9% thereafter.

The risk-free rate is 2% and the expected market return is 7% (both EARs).

What is the quarterly required return?

What is the intrinsic value of the stock?

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