What is the intrinsic value of Sure stock today

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Question - Sure Tool Company is expected to pay a dividend of $2 in the upcoming year, and it is expected to grow at 5% indefinitely. The risk-free rate of return is 4%, and the expected return on the market portfolio is 12%. The beta of Sure Tool Company's stock is 1.25. What is the intrinsic value of Sure's stock today?

Reference no: EM132924954

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