*Please answer correctly and show calculations.

Company: APIX (APX)

Current price = $58.00 a share

2012 earnings = $3.625

Historical plowback ratio = 60%

ROE = 14%

Beta = 1.4

Risk free rate = 2%

Market risk premium = 6%

Forward P/E = 15

Unless otherwise stated, assume a required return (cost of equity) equal to 10% and a growth rate of 7%.

a. If earnings grow 7% in 2013, what is 2013s expected dividend?

b. What is the intrinsic value of APIX if it grew 8% in 2013, 8% in 2014, and 7% every year after?