Question: Todd Mountain Development Corporation (TMDC) is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate

Todd Mountain Development Corporation (TMDC) is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 4% per year. The investors required return for TMDC is 14%. Using the constant-growth DDM, the intrinsic value of the stock is

A. 14.46

b. 21.65

c. 27.50

d. 30.00

e. 37.75

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