3. DDM, PVGo and Justified P/E The market consensus is that TechTrend Corporation has a ROE of 14% and a beta of 1.32. The forward 12-month earning per share is expected to be be $1.50. The market lieves that TechTrend Corporation will maintain indefinitely its dividend payout ratio of 85%. The expected market risk premium is assumed to be 7%, and risk free rate is 3%. (a) Find the intrinsic value estimate of TechTrend stock according to the constant growth DDM. (b) Calculate the present value of growth opportunities (PVGO). (c) Calculate the justified trailing P/E ratio according to the constant growth DDM