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What will be the intrinsic value of a stock

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Reference no: EM132495014

What will be the intrinsic value of a stock that pays constant dividend of $10 every two years with the first payment being pay five years from now. Assume that CAPM holds, beta of this firm is one and that the market expected return is 8%.

Important note: if you are missing one variable (for example, the standard deviation of the market) and you cannot solve this question - please write it down and explain why you cannot solve the question.

Reference no: EM132495014

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