1. (13 marks) Your manager has asked you to determine an intrinsic value for Utica Manufacturing Company's stock. You have gathered the following information: Selected Financial Information Return on equity 0.15 dividend payout rate 40% Number of shares outstanding (millions) 100 Most recent dividend (paid in Sept. 2020) $1.10 Market Capitalization rate 15% Weighted Average Cost of Capital (WACC) 14% Growth Rate Starting in 2024 3% Income Statement (in millions) 2019 2020 Revenue 826 905 Depreciation 19 22 Operating Costs 342 373 Earnings before Interest and Taxes 465 510 Interest 8 8 Earnings before Tax 457 502 Taxes (40%) 182.8 201 Net Income 274.2 301 | Balance Sheet (in millions) 2019 2020 Current Assets 719 794 Net Property, Plant, and Equipment 3190 3,391 Total Assets 3909 4,185 Current Liabilities 228 323 Long-term Debt 1650 1,650 Total Liabilities 1878 1,973 Shareholders equity 2031 2,212 Total Liabilities and Equity 3909 4,185 Capital Expenditures 194 201