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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

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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 SmilleWhite Corporation. a. Calculate the required rate of return for SmileWhite using the information in the following table: 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 SmlleWhite: 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. intinske stock value in 20135 intrinsic stock value in 2010 . 5

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