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Your broker has recommended that you purchase stock in Alacan, Inc. She estimates that the 1-year target price is $58.00, and Alacan consistently pays an

Your broker has recommended that you purchase stock in Alacan, Inc. She estimates that the 1-year target price is $58.00, and Alacan consistently pays an annual dividend of $8.00. Analysts estimate that the stock has a beta of 0.90. The current risk-free rate is 2.10% and the market risk premium (RM - RF) is 7.00%. Assuming that CAPM holds, what is the intrinsic value of this stock?

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