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This morning, a firm paid dividends of $40 per share. The firm has an ROA of 10% and pays out 70% of earnings in the

  1. This morning, a firm paid dividends of $40 per share. The firm has an ROA of 10% and pays out 70% of earnings in the form of dividends. Treasuries currently pay 4%, the market risk premium is 4%, and the firm has a beta of 50. What is the intrinsic value of a share of the firms stock?

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