Suppose a firm is facing difficulties and investors expect future earnings and dividends to decline at a constant annual rate of 5 percent. The most recent dividend (D0) was $1 and the stock price in the market is $10. The risk-free rate is 4.5% and the expected return on the market is also 4.5%. If the stock s beta is 1.2, the intrinsic price of the stock is:

		$10.00
		$9
		$12
		None of the above