200 shares of Alpha Corp. common stock, a tech company that trades OTC. It has a beta of 1.6, std dev of 15%, a coefficient of determination of 70%, 5-yr avg return of 12%, a current price of $50, and an annual dividend of $1.00 per share, which is expected to grow at 4% per year. Their required rate of return is 6.5% on this holding.

What is the intrinsic value?

Answer rating: 100% (QA)

Answer The intrinsic value of the holding is 29462 This is calculated as follows Intrinsic value Div... View the full answer