27. (12 (12 points) USE THE FOLLOWING INFORMATION TO ANSWER THE FOLLOWING FOUR QUESTIONS: 3 %, and expected return on the ABC'S Do=$2.00, 9 (constant and forever) = 9% beta = 2.00, R market portfolio 8%. A. What is the stock's intrinsic value today? B. New information is introduced today. Expected Inflation rate increases by 1% (100 basis points), but nothing else changes. First, show in the diagram below. Then show the new RRR and new intrinsic value for ABC stock. (Hint: Rechanges but not R-RI). LABEL the diagram. SHOW THE NEW SML VIA DOTTED LINE DIAGRAM Before change After change RRR: PRICE