Question: i believe the answer is 41.64 please check and explain Question 5 1 pts Intercoastal Corporation recently paid a common stock dividend of $2.75. Analysts

i believe the answer is 41.64 please check and explain i believe the answer is 41.64 please check and explain Question 5

Question 5 1 pts Intercoastal Corporation recently paid a common stock dividend of $2.75. Analysts predict that the firm and its dividends will grow at a rate of 6% per year. Intercoastal has a beta of 1.20. The current risk-free rate of interest is 5.0% and the current return on the market is 13%. What is the intrinsic value of Intercoastal common stock? o $41.64 $73.68 $33.90 $27.04 $31.98

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Explain why expected net income is also called "accretion of discount."

Q:

Question 5 1 pts Intercoastal Corporation recently paid a common stock dividend of $2.75. Analysts predict that the firm and its dividends will grow at a rate of 6% per year. Intercoastal has a beta...

Q:

Question 6 1 pts Intercoastal Corporation recently paid a common stock dividend of $2.50. Analysts predict that the firm and its dividends will grow at a rate of 12% per year. Intercoastal has a beta...

Q:

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Q:

Below is the assignment, attached in the excel file is actually all the answers, I need these transferred into my own excel file, answering all the questions below. Integrated mini-case: ?Working...

Q:

Questions to be answered from the file attached. I have attached both chapters from where you will be answering these. Make sure to answer it thoroughly Chapter12 (page number 215or p 42 of the pdf)...

Q:

Please help solve problem 21-37 in chapter 21. What is the working capital of , 12/31/x1 ? and please help solve problem 21-38 ? thank you 21 Chapter Twenty-One Analyzing Financial Statements After...

Q:

Please help solve problem 21-37 in chapter 21. What is the working capital of , 12/31/x1 ? and please help solve problem 21-38 ? thank you 21 Chapter Twenty-One Analyzing Financial Statements After...

Q:

Each separate response must have approximately 200 words. Assignments vary widely; however, essays should be written in APA style, with in-text citations and a separate reference listing as...

Q:

Each separate response must have approximately 200 words. Assignments vary widely; however, essays should be written in APA style, with in-text citations and a separate reference listing as...

Q:

Each separate response must have approximately 200 words. Assignments vary widely; however, essays should be written in APA style, with in-text citations and a separate reference listing as...

Q:

Provide a paper about The Technology Governance Plan with discussing following terms. IT Governance Framework Ethical Considerations in IT Governance IT governance and Strategic Planning

Q:

For each question, compose a one- or two-paragraph answer that includes the factual information needed to completely address the question. Check Your Progress questions can also be used for...

Q:

If Denali and Kristie ( each a 3 0 % shareholder in a calendar year s corporation ) file a revocation statement on February 1 0 , 2 0 2 4 , to terminate their s corporations s election, what is the...

Q:

The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross...