Fools Gold Mining Company is expected to pay a dividend of $3 in the upcoming 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 Fools Gold Mining Company has a beta of -0.25. What is the intrinsic value of Fools’ stock?Single choice

Question Image
A

$25

B

$75

C

$100

D

$50

E

$30

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