Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2.
-What is the intrinsic value of Torque's stock?
A)$14.29
B)$14.60
C)$12.33
D)$11.62
E)none of the above

Question

Quizplus · Accepted Answer

The Answer of Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2.
-What is the intrinsic value of Torque's stock?
A)$14.29
B)$14.60
C)$12.33
D)$11.62
E)none of the above

Torque Corporation Is Expected to Pay a Dividend of $1