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Fujix Inc. earned $2 per share last year, and the firm has a policy of paying out half of its earnings as dividends. The company’s earnings are expected to grow at 20% rate this year, 15% next year, 10% the following year and 5% a year thereafter. Its beta coefficient is 1.2, and the current risk free rate is 9%. Assume that the market portfolio is expected to earn 14% a year. estimate the intrinsic value of Fujix’s stock as of now. Also, what is the expected dividend and capital gains yield for the coming year?

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