ESSENTIALS OF INVESTMENTS>LL<+CONNECT
ESSENTIALS OF INVESTMENTS>LL<+CONNECT
11th Edition
ISBN: 9781264001026
Author: Bodie
Publisher: MCG
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Chapter 13, Problem 10PS

Miltmar Corporation will pay a year-end dividend of $ 4 and dividends thereafter are expected to grow at the constant rate of 4 % per year. The risk- free rate is 4 % , and the expected retune on the market portfolio is 12 % . The stock has a beta of 0. 75 . What is the intrinsic value of the stock? LO 13 2

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ESSENTIALS OF INVESTMENTS>LL<+CONNECT

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