(Solved): Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Div ...

Todd Mountain Development Corporation is expected to pay a dividend of $\$3$ in the upcoming year. Dividends are expected to grow at the rate of $8\%$ per year. The risk-free rate of return is $5\%$, and the expected return on the market portfolio is $15\%$. The stock of Todd Mountain Development Corporation has a beta of 0.50. Using the constant-growth DDM, the intrinsic value of the stock is 37.50 16.67 4.00 150.00