Question: 4) (1.25 points; partial credit] Based on your analysis, Todd Mountain Development Corporation is expected to pay a dividend of $3.00 in the upcoming year.

4) (1.25 points; partial credit] Based on your analysis, Todd Mountain Development Corporation is expected to pay a dividend of $3.00 in the upcoming year. It just paid a dividend of $2.00. Dividends are expected to grow at a rate of 8%/year. The required rate of return on this stock is 14%/year. Using the constant growth dividend discount model, the intrinsic value of the stock is (show me your work!) (0.75 points; no partial credit] You check on Yahoo Finance: Todd Mountain Development Corporation is currently trading at $40. You should a. buy or buy on margin b. sell or short-sell (no explanations necessary)

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