1. Suppose Nogro Corp's earnings per share is $2.00 in 2022, on which it plans to pay dividends of $1.60 per share. Earnings are expected to grow -2%, 6%, 5% and 3% from 2023 to 2026, during which period the dividend payout ratio is expected to remain unchanged. After 2026, the earning growth rate is assumed to drop to 0% and the payout ratio will increase to 100%. The risk-free rate of return is 2%, the market risk premium is 7%, and the stock of Nogro has a beta coefficient of 1.2. (a) What is the intrinsic value of a share of Nogro Corp's stock at the beginning of 2023 according to the dividend discount model? (b) If the market price of Nogro stock is $16 at the beginning of 2023, and you expect the market price to be equal to the intrinsic value at the end of 2023, what is your expected 1-year holding period return?