Janet Ludlows 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.

CAPM = 0.255

a) Estimate the dividend value of SmileWhite in 2011 using the table above and the two-stage DDM. Dividends per share in 2010 were $1.

b) Estimate the dividend value of SmileWhite in 2012 using the table above and the two-stage DDM.

c) Estimate the dividend value of SmileWhite in 2013 using the table above and the two-stage DDM.

d) Estimate the dividend value of SmileWhite in 2014 using the table above and the two-stage DDM.

e) Estimate the intrinsic value of SmileWhite in December 2013 using the table above and the two-stage DDM. Dividends per share in 2010 were $1.

f) Estimate the intrinsic value of SmileWhite in December 2010 using the table above and the two-stage DDM.

Ludlow estimates the following EPS and dividend growth rate for SmileWhite: First Three years: 15% per year Years thereafter: 12% per year Ludlow estimates the following EPS and dividend growth rate for SmileWhite: First Three years: 15% per year Years thereafter: 12% per year