Question: Intercoastal Corporation recently paid a common stock dividend of $ 5 . 0 0 . Analysts predict that the firm and its dividends will grow

Intercoastal Corporation recently paid a common stock dividend of $5.00.Analysts predict that the firm and its dividends will grow at a rate of 12% per year. Intercoastal has a beta of .75. The current risk-free rate of interest is 3.0% and themarket risk premium is 15%. What is the intrinsic value of Intercoastal common stock?
a) $282.40
b) $257.00
c) $248.90
d) $258.68
e) $232.57

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