PT. ABC predicts its future dividend profile as follows:

Year Dividend (IDR)

2020 30

2021 10

2022 20

2023 30

2024 35

2025 40

After 2025, ABC assumes constant dividend growth based on an 8 percent return on equity (ROE), and 10 percent dividend payout ratio. Currently, ABCs market beta is 1.2, and the market risk premium is 10 percent. Meanwhile, the one-year, two-year, and three-year spot rates (from the yield curve) are 8%, 9%, and 10%, respectively. Estimate:

(a) ABC discount rate ;

(b) ABC intrinsic value in 2020