first part is correct.

A stock paid an annual dividend yesterday of $4 per share. Dividends are expected to grow at 5.5% per year. If the stock has a beta of 85 . the risk-free rate is 3%, and the expected market return is 9.5%, what is the stock's intrinsic value today? (this is yet another way of phrasing a question asking you to find PO.) QUESTION 3 What will the value of the stock in the previous question be in 3 years if the risk-free rate and expected market retun have risen to 4% and 10.25%, respectively, at that time? Calculate D4 using the div growth rate, calculate the new CAPM r, then use DGM to find P3