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Business, 20.11.2019 06:31 esnyderquintero

Miltmar corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 4% per year. the risk-free rate is 4%, and the expected return on the market portfolio is 12%. the stock has a beta of 0.75.

a. calculate the market capitalization rate. (do not round intermediate calculations. round your answer to 2 decimal places.)

market capitalization rate%

b. what is the intrinsic value of the stock? (do not round intermediate calculations. round your answer to 2 decimal places.)

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