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. Calculate the required rate of return for SmileWhite using the information in the following table: December 2010 SmileWhite Quick Brush 1.35 Beta 1.2 Market Price $45 $30 Intrinsic Value $63 ? Note: Risk free rate = 4%; expected market return = 14.5% Instruction: enter your answer as a decimal rounded to 4 decimal place. 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. Ludlow estimates the following EPS and dividend growth rate for SmileWhite: First Three years: 15% per year Years thereafter: 12% per year Estimate the dividend value of SmileWhite in 2011 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 ??? 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. Ludlow estimates the following EPS and dividend growth rate for SmileWhite: First Three years: 15% per year Years thereafter: 12% per year Estimate the dividend value of SmileWhite in 2012 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. You may use the results obtained in Question 8-13 Year Dividends 2010 $1.00 2011 From Question 8-13 222 2012