3) (4 pts) You estimate Company C will have EPS of $4.00 one year from now and EPS of $4.40 years from now. After year 2. you assume the company's earnings will grow at a constant rate of 6.5%. The dividend payout ratio is expected to remain constant at 40%. The appropriate discount rate for this company is 8.9%. a. Based on a constant growing perpetuity estimation, what is the expected selling price of Company C's stock in two years? What is the intrinsic value of the stock today? What is the implied P/E multiple (ttm) in two years based on your model? 2019 2020 2021 $4.00 $4.40 EPS Dividends Selling Price Intrinsic Value today = $. Implied 2021 P/E ratio = 4) (3 pts) Assume that Company D's Free Cash Flow from assets has been estimated to be $80 million in 2020 and $90 million in 2021. The free cash flow is expected to grow at a constant rate of 5% after 2021. a) If the appropriate discount rate for Company D's FCF model is 7.7%, what is the horizon value at the end of 2021 for Company D using the Free Cash Flow Model? 2019 2021 2020 $80 m FCF $90 m Horizon Value b) What is the intrinsic Value today (beginning of 2020 aka end of 2019) of Co. D's Assets? Intrinsic Value = c) If Company D has no meaningful debt then Assets = Equity and the intrinsic Value of the Assets would equal the intrinsic Value of Equity. If the firm has 45 million shares outstanding, what would be the intrinsic value per share of stock today according the estimates given for Company D? Intrinsic Value per share =