5 -you expect the price of ABC stock to be 55 per share a year from now, if the current market price is 49 and you expect to pay a dividend of 3 per share. If the required rate of return is 13% a- is the stock correctly priced? b- calculate the intrinsic value of ABC stock? 6-Firm reinvests 40% of its earnings in projects with ROE of 10%, capitalization rate is 14%. Expected yearend dividend is $3/ share, paid out of earnings of $5/ share. Calculate PVGO 1. AEC has an ROE =9%, beta of 1.25, and a plowback ratio of .60. This year's earnings were $4 per share. The estimated market return is 14%, and T.bills offer a 6% return a. find the price? (4 / ) b. calculate the present value of growth opportunity (2/)