1. If a company pays out a dividend of $1.35 per share and is expected to keep paying this dividend forever and the firm has a BETA=0.75, what would you expect to be the firms intrinsic value today? Assume the risk free rate is 3% and the market return is 12% (please use 5 decimal places).

2. Value a firms share price if the firm is expected to have earnings per share of $3.50 next year and the firm has a blowback ratio of 25%. Assume the firm has dividend growth rate of 2% and the firms required rate of return is 9%.