4) (3 pts) You estimate Company B's Earnings per Share (EPS) over the next two years will be $4.00 next year and $4.50 the following year. The company will pay out 30% of the earnings as dividends and you expect Company B will sell at a P/E multiple of 30 in two years. The required rate of return forthis stock is 10% a) What is your estimation of the Horizon Value in 2 years (your estimate of what the stock will sell for in 2 years)? Horizon Value b) What is your estimate of intrinsic value today of Company B's common stock today? (Hint: don't forget to include the dividends paid in year 1 and year 2). This is what you think it is worth today. Intrinsic Value today = $