Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year....

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Todd Mountain Development Corporation is expected to pay adividend of $3 in the upcoming year. Dividends are expected to growat the rate of 8% per year. The risk-free rate of return is 5%, andthe expected return on the market portfolio is 17%. The stock ofTodd Mountain Development Corporation has a beta of .75. Using theconstant-growth DDM, the intrinsic value of the stockis_________.

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Information provided Next years dividend 3 Dividend growth rate 8 Risk free rate 5 Expected return on the market portfolio 17 Beta 075 First the    See Answer
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Todd Mountain Development Corporation is expected to pay adividend of $3 in the upcoming year. Dividends are expected to growat the rate of 8% per year. The risk-free rate of return is 5%, andthe expected return on the market portfolio is 17%. The stock ofTodd Mountain Development Corporation has a beta of .75. Using theconstant-growth DDM, the intrinsic value of the stockis_________.

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