a. A Jamaican company has a net free cash flow of $8 million and is expected to grow at 20% during the next 3 years and then grow at 7% thereafter. The company has debt of $120 million and 5,000,000 shares of outstanding common stock. The company pays no dividends and since it would like to retain its earnings, it is not expected to pay any dividends. What are the terminal and intrinsic values of the stock assuming the discount rate is 11%? (11 Marks) b. Explain how the concept of intrinsic value fits into the security analysis process. (4 Marks) c. Assume a firm has a current P/E ratio of 19 and its current EPS is $1.25. It has increased its earnings per share by 6% annually in the past and this rate is likely to continue for some time. If the P/E ratio is expected to decrease to 17 in five years, what is the stock price expected to be in year five? (5 Marks) d. Assume a stock is trading for $30 per share. You expect the firm to pay a dividend next year of S0.50, in year 2 of 80.60, and in year 3 of 0.75. If you expect the stock to sell for $35 in three years and the required rate is 10%, is this stock undervalued or overvalued