(54 pts) Bedrock City Inc. is a successful licensing holding company. Bedrock City's dividends per share are currently $2 and its earnings per share are $3. Stocks with similar risk are currently priced to provide a 15% required rate of return. The earnings and dividend growth prospects of the company are disputed by two analysts. Rick is forecasting a ROE 21% and a payout ratio of 23 per year forever. Paul is predicting a 20% growth in dividends, but only for the next two years, after which the growth rate is expected to slow to 5% forever. 3. 1 ) 2) a. What is the intrinsic value of Bedrock City's stock according to Rick? (12 points) Based on your calculation in a, how much is the market paying per share for growth opportunities (PVGO) according to Rick? Assume Er- Eo without growth. (10 points) b. part a, is c. If the current market price for Bedrock City is S25 per share, based on your calculationin it is undervalued or overvalued? What is your trading strategy and your capital gain based on your over/ under-valuation decision? Assume no transaction fee and that the market price adjusts to the intrinsic value immediately after your trade. (12 points) d. What is the intrinsic value of Bedrock City's stock according to Paut? (20 points)