An analyst gathers the following data to determine the attractiveness of a company's common stock: Dividends per share in 2007: $2 Dividends per share in 2013: $3 Expected return on the market: 17% Expected nominal risk-free return: 9% Stock's beta: 1

Subject:FinancePrice:2.87 Bought7

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 An analyst gathers the following data to determine the attractiveness of a company's common stock:

Dividends per share in 2007: $2
Dividends per share in 2013: $3
Expected return on the market: 17%
Expected nominal risk-free return: 9%
Stock's beta: 1.8
Stock's market price as of the end of December 2013: $19

Using the Dividend Discount Model, the stock's intrinsic value in 2006 is closest to:

(All years are end of years)

a) None of these answers is correct

b)$6.67

c)$4.36

d)$5.84