Multiple Choice
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
Correct Answer:
Verified
Correct Answer:
Verified
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