Corp currently pays out $100\%$ of its earnings to shareholders as dividends. It expects to yield $$4$ earnings per share forever starting next year $($exactly one year from now$).$ The market risk premium is $7\%,$ and the risk$-$free rate is $3\%$ Corp$$s stock beta $\backslash$beta is $1\mathrm{.}5.$

What is the required rate of return for Corp stocks?

Calculate its stock$$s current intrinsic value if the firm keeps its current payout policy forever.

If Corp just discovers a growth opportunity, with ROE$=18\%.$ The management decides to pay out only $40\%$ of its earnings starting from the next year$$s dividend and forever after, so that it can reinvest the rest in the growth opportunity. Suppose the growth opportunity lasts forever, what is the present value of its growth opportunity $($PVGO$)$