What is the intrinsic value of this stock

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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 $61, and ZZZ-Best consistently pays an annual dividend of $18. Analysts estimate that the stock has a beta of 0.84. The current risk-free rate is 2.10% and the market return is 11.1%. Assuming that CAPM holds, what is the intrinsic value of this stock?

Reference no: EM131912169

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