1. CFBP Corp recently paid a $15 dividend. Dividends are expected to increase by 50% in each of the next two years, then grow at 20% for the following 2 years after that. You predict that the stock will be worth $400 in 4 years time. The risk-free rate is 4%, the market risk premium is 3%, and the firm has a beta of 2. What is the intrinsic value of a share of CFBPs stock?

2. Now assume the same information as in the previous problem but that instead of having a prediction of CFBPs stock price in 4 years, you instead assume that dividends will grow at a steady-state 5% annually after the 4^th year. Now what is CFBPs intrinsic value?