Please compute the intrinsic value $(V_0)$ of Starbucks in $2018$ based on the information from Value Line Investment Survey. What is your investment recommendation based on the intrinsic value, buy or short sell?

a$.$ Dividend payout ratio is $30\%,$ROE$=11\mathrm{.}0\%,=1\mathrm{.}05,$ current actual price is $20\mathrm{.}37.$

b$.$ Dividends for the years between $2019$ and $2022$ are shown below. We assume the dividend growth rate will be steady beyond $2022,$ which can be computed based on $g=$ROE$b.$

$2019$: $0\mathrm{.}90$

$2020$: $0\mathrm{.}98$

$2021$: $1\mathrm{.}06$

$2022$: $1\mathrm{.}15$

The risk$-$free rate on T$-$bills was $3\mathrm{.}5\%.$ Suppose the market risk premium is $8\%.$