Question: BF Technologies has 1 , 0 0 0 , 0 0 0 shares outstanding and total common equity of $ 5 0 , 0 0

BF Technologies has 1,000,000 shares outstanding and total common equity of $50,000,000, they earned a net income of $10,000,000 for the latest financial year and has just announced a total dividend payment of $3,000,000. Given that TRF =5%, rM =11%, and beta =1.9, and that the dividend is expected to grow at a constant rate forever, what is the intrinsic value of the stock?

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