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: SmileWhite December 2010 Quick Brush Beta 1.35 Market Price $45.00 Intrinsic Value $63.00 Note: Risk-free rate = 5%; expected market return = 14%. $32 $32 Instruction: enter your answer as a percentage rounded to 1 decimal place. Required rate of return [ 14.9% b. Ludlow estimates the following EPS and dividend growth rate for SmileWhite: First three years: 16% per year Years thereafter: 8% per year Estimate the intrinsic value of SmileWhite in December 2010 using the table above and the two-stage DDM. Dividends per share in 2010 were $1. Instruction: enter your answer as a decimal number rounded to 2 decimal places. Year Dividends 2010 $1.00 2011 $ 115 2012 $ 2013 $ 2014 $ Intrinsic stock value in 2013: $0 Intrinsic stock value in 2010: $0