Question: ACME, Inc. expects its current annual $3.25 per share common stock dividend to remain the same for the foreseeable future. What is the intrinsic value

ACME, Inc. expects its current annual $3.25 per share common stock dividend to remain the same for the foreseeable future. What is the intrinsic value of the stock to an investor with a required return of 65%? Round to two decimal places.

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(1) Describe and interpret the assumptions related to the problem.

(2) Apply the appropriate mathematical model to solve the problem.

(3) Calculate the correct solution to the problem.

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