High Fly Airline is expected to pay a dividend of $7 in the coming year.Dividends are expected to grow at the rate of 15% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of High Fly Airline has a beta of 3.00.The intrinsic value of the stock is ________.
A) $46.67
B) $50.00
C) $56.00
D) $62.50
E) none of these
Correct Answer:
Verified
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