Onnie Banko Swimwear recently issued $75.00 par-value preferred stock that pays a 7.00% dividend rate per year. The stock has a beta of 1.09, and the current risk-free rate is 2.40% and the market return (RM) is 11.80%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?
$42.67
$43.94
$43.28
$43.74
$41.52