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