(20%) Saber Industries is going through a volatile period. They just reported earnings and their stock sold off in the market. Saber reported eps for fiscal full year 2023 ending 8/31 of $4.00. They also just paid a dividend of $2.00. The company has guided to the following earnings stream below over the next several years. Following this volatile period, the company expects growth to stabilize at 5% in perpetuity. Saber has a beta of 1.50 and the risk-free rate and market rate of return are 4.5% and 9.5%, respectively. Assume the following:

1. Saber has given the following guidance for earnings: 2024 = $4.50; 2025 = $7.00; 2026 = $3.50; and 2027 = $4.00. Saber intends to maintain a constant payout ratio.Saber is currently trading at $29. What is your intrinsic value for Saber?
2. What is the percentage return to fair value?
3. What secular growth rate does Sabers current stock price imply?