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Civil Engineering Corporation Is Expected to Pay a Dividend of $1.00

Question 22

Multiple Choice

Civil Engineering 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 Civil Engineering Corporation has a beta of 1.2.What is the intrinsic value of Civil Engineering's stock?


A) $14.29
B) $14.60
C) $12.33
D) $11.62
E) none of these

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