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: December 2010 SmileWhite 1.2 Quick Brush 1.35 Beta $45.00 $63.00 Market Price Intrinsic Value Note: Risk-free rate 4.5%; expected market return 16%. $32 Instruction: enter your answer as a percentage rounded to 1 decimal place. Required rate of return b. Ludlow estimates the following EPS and dividend growth rate for SmileWhite: First three years: 16% per year Years thereafter: 10% 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 $1.00 $ $ $ $ 2010 2011 2012 2013 2014 $ Intrinsic stock value in 2013: $ Intrinsic stock value in 2010: