What is the intrinsic value of stock

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1. High Flyer industries just paid its annual dividend of $4 per share. The dividend is expected to grow at 11% indefinitely.The beta is 1.5,Rfr is 5%.Market risk premium is 7.5%. What is the intrinsic value of the stock?

a. 84.57      b. 25.45       c. 31.45       d. 36.63

2. If beta was 1.25, and all else was the same, what would the intrinsic value be?

a. 120.00    b. 27.83     c. 131.56       d. 30.88

Reference no: EM131972759

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