The risk-free rate is 5% and the expected return on the market index is 15%. A stock has a: Beta of 1.0. Dividend payout ratio of 40%. Return on equity (ROE) of 15%. If the stock is expected to pay a $2.50 dividend, its intrinsic value using dividend discount model closest to: A. $27.77. 3. $41.67. C. $50.00. D. $53.33