Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 7% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 16%. The stock of Todd Mountain Development Corporation has a beta of 0.65. Using the constant-growth DDM, the intrinsic value of the stock is _________.

62.50

42.86

15.96

2.80