1. a. IBX's stock dividend at the end of this year is expected to be $2.15, and it is expected to grow at 11.2% per year forever. If the required rate of return on IBX stock is 15.2% per year, what is its intrinsic value? b. If IBX's current market price is equal to this intrinsic value, what is next year's expected price? c. If an investor were to buy IBX stock now and sell it after receiving the $2.15 dividend a year from now, what is the expected capital gain (i.e., price appreciation) in percentage terms? What is the dividend yield, and what would be the holding-period return? 2. a. Calculate the price of a firm with a plowback ratio of .60 if its ROE is 20%. Current earnings, E1, will be $5 per share, and k = 12.5%. b. What if ROE is 10%, which is less than the market capitalization rate? Compare the firm's price in this instance to that of a firm with the same ROE and Ej but a plowback ratio of b = 0. 3. Gap Inc. currently pays a dividend of $1.22, which is expected to grow indefinitely at 5%. If the current value of Gap shares based on the constant growth model is $32.03, what is the required rate of return? 4. Best Buy has a current market value of $41 per share with earnings of $3.64. What is the present value of its growth opportunities if the required rate of return is 9%