The SST Corporation just reported net income of $37.8 million and total assets of $432 million with 30 million shares outstanding. The firm has an equity multiplier of 1.6 and a dividend payout ratio of 70%. Assume the firm's ratios are expected to hold in the future. SST has a beta of 1.2, T-bonds are yielding 3% and the market risk premium is 6.5%. Based on the constant growth model, what is the firm's estimated intrinsic value?

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The Answer of The SST Corporation just reported net income of $37.8 million and total assets of $432 million with 30 million shares outstanding. The firm has an equity multiplier of 1.6 and a dividend payout ratio of 70%. Assume the firm's ratios are expected to hold in the future. SST has a beta of 1.2, T-bonds are yielding 3% and the market risk premium is 6.5%. Based on the constant growth model, what is the firm's estimated intrinsic value?

The SST Corporation Just Reported Net Income of $37