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.
Correct Answer:
Verified
Correct Answer:
Verified
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