Interior Airline Is Expected to Pay a Dividend of $3

Interior Airline is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 10% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 13%. The stock of Interior Airline has a beta of 1.4. Using the constant-growth DDM, the intrinsic value of the stock is ________.

A) $45.45
B) $22.73
C) $27.78
D) $41.67