Development corporation is expected to pay dividend

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Reference no: EM131890662

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 19%. The stock of Todd Mountain Development Corporation has a beta of 0.65. Using the constant-growth DDM, the intrinsic value of the stock is _________.

Reference no: EM131890662

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