Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year.Dividends are expected to decline at the rate of 2% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of Old Quartz Gold Mining Company has a beta of -0.25.The intrinsic value of the stock is ______.
A)$80.00
B)$133.33
C)$200.00
D)$400.00
E)none of the above

Question

Quizplus · Accepted Answer

The Answer of Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year.Dividends are expected to decline at the rate of 2% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of Old Quartz Gold Mining Company has a beta of -0.25.The intrinsic value of the stock is ______.
A)$80.00
B)$133.33
C)$200.00
D)$400.00
E)none of the above

Old Quartz Gold Mining Company Is Expected to Pay a Dividend