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Westsyde Tool Company is expected to pay a dividend of $ 1 . 5 0 in the upcoming year. The risk - free rate of

Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the market risk premium is 8%. Analysts expect the price of Westsyde Tool Company shares to be $22 a year from now. The beta of Westsyde Tool Company's stock is 0.9. Compute the intrinsic value of Westsyde Tool Company's stock. HINT: Use the CAPM for the required return (market capitalization rate).

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