CAN YOU PLEASE SHOW IT ON WORD.

Janet Ludlow's firm requires all its analysts to use a two-stage DDM and the CAPM to value stocks. Using these measures, Ludlow has valued QuickBrush Company at $63 per share. She now must value SmileWhite Corporation. a. Calculate the required rate of return for SmileWhite using the information in the following table: December 2013 Company QuickBrush Beta 1.35 Market price $45.00 Intrinsic value $63.00 Note: Risk-free rate = 3 %; expected market return = 13%. Smile White 1.20 $35.00 ? b. Ludlow estimates the following EPS and dividend growth rates for Smile White: First three years: 12% per year Years thereafter: 8% per year Estimate the intrinsic value of Smile White using the table above and the two-stage DDM. Dividends per share in 2013 were $1.63