Company is an electric utility who has paid a constant dividend of $3.00 per share or each of the last 3 years. Its earnings per share have similarly remained flat $8.50. The firm's earnings and dividends are expected to grow slowly for the next 3 years at 4% per year. Beginning in year 4, the management expects its long-term growth rate of dividends to be 2%. The company's expected return on equity is 5.25%.

1. What is the company's current dividend payout ratio?

2. What is your estimate of the dividends per share at the end of year 3?

3. What is your estimate of the share price at the end of year 3?

4. What is your estimate of the current intrinsic value per share?

5. What is the present value of the company's growth opportunities?