Question: Table below to be used with problem #4 below: Variable Value Explanation Dividend 12%, 0%12% for 2 years (annual estimate) and 0% per growth 1

Table below to be used with problem #4 below: Variable Value Explanation Dividend 12%, 0%12% for 2 years (annual estimate) and 0% per growth 1 year indefinitely thereafter. estimate Current $1.00 Dividend paid to shareholders on record dividend Beta 2.0 Current estimate coefficient Expected 12.0% ] Historical arithmetic average (annual) return market Jon the S&P 500 Index return RFR 5.0% 10-year Treasury bond yield 4. (10 pts) Using the table above, what is the maximum that an investor should be willing to pay for the share of common stock today (intrinsic value)

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