Miltmar Corporation will pay a year-end dividend of \\( \\$ 4 \\), and dividends thereafter...

50.1K

Verified Solution

Question

Finance

image 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 portfollo is \12. The stock has a beta of 0.75 . Required: a. Calculate the market capitalization rate. (Do not round Intermedlate calculations.) b. What is the Intrinsic value of the stock? (Do not round Intermedlate calculations. Round your answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students