$2)$ A$)$ Calculate the intrinsic value of ABC Corp using a constant dividend growth model where the growth rate of the dividend is expected to increase at $3\%$ forever and given the following.

$-$ Expected EPS is $$10\mathrm{.}00$ and the Payout ratio is $60\%-$ we expect that ratio to remain constant and also the EPS $($earnings per share$)$ to grow at the same rate as the dividend.

$-$ The beta $=1\mathrm{.}0,$ the risk$-$free rate is $4\%$ and the market risk premium is $10\%$

Recall that DPS $=$ EPS X POR

B$)$ Calculate the dividend yield using D$(1)$ and P$(0)$ and show how the dividend yield plus the constant growth rate $=$ the required rate of return per CAPM

C$)$ Calculate the price one year from today P$(1)$