You see a mature, stable stock with a high dividend payout that you want to value. The stock paid a dividend of $3.08 per share over the past twelve months. Dividends are growing at a constant rate of 3.0% per year. The risk-free rate of return is 4% and the market risk premium (expected return on the S&P 500 minus the risk-free rate of return) is 6%. The stock has a beta of 1.24 versus the S&P 500. Calculate the intrinsic value of this stock using the constant growth dividend discount model.

Group of answer choices

$26.73

$39.99

$28.48

$37.59