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Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $64.00, and ZZZ-Best consistently pays an
Your broker has recommended that you purchase stock in ZZZ-Best, Inc. She estimates that the 1-year target price is $64.00, and ZZZ-Best consistently pays an annual dividend of $13.00. Analysts estimate that the stock has a beta of 1.12. The current risk-free rate is 2.70% and the market return (RM) is 12.40%. Assuming that CAPM holds, what is the intrinsic value of this stock? Recently posted but solution was wrong.
A) $66.97 |
B) $67.80 |
C) $66.74 |
D) $71.13 |
E) $63.1 |
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