Sure Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%,
and the expected return on the market portfolio is 14%. Analysts expect the price of Sure Tool Company shares to
be $22 a year from now. The beta of Sure Tool Company's stock is 1.25. What is the intrinsic value of Sure Tool Company's stock?

Answer rating: 100% (QA)

To calculate the intrinsic value of Sure Tool Companys stock we can use the dividend discount m... View the full answer