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YNA is expected to pay a dividend of $1.0 in Year 1 and $1.5 in Year 2. Analysts expect the price
of YNA shares to be $18 two years from now. The risk-free rate of return is 4%, and the expected
return on the market portfolio is 14%. The beta of the stock is 1.1.
Compute the intrinsic value of the stock.
Round your answer to two decimal places and enter without the dollar sign.

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YNA is expected to pay a dividend of 10 in Year 1 and 15.pdf

  • 1. YNA is expected to pay a dividend of $1.0 in Year 1 and $1.5 in Year 2. Analysts expect the price of YNA shares to be $18 two years from now. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. The beta of the stock is 1.1. Compute the intrinsic value of the stock. Round your answer to two decimal places and enter without the dollar sign.