Salmon Industries, which hasa beta of 0.70, is expected to pay a dividend of $4 at the end of the current year. The dividends should be able to grow at the rate of 10% per year. The risk-free rate of return is 8%, and the market is expected to earn 18%. The stock of Salmon Industries has a beta of 0.7O. Based on the dividends it will pay, the intrinsic value of the stock is

a.40

b.16

c.80

d.8