Question 1 (20 marks) Answer the following questions in the context of constant growth dividend model. + Use the following information for parts A and B. Mago Limited has $4.00 earnings per share this year. The company's return on equity and dividend payout ratio are 17% and 60%. Mago Limited's stocks has a beta of 1.5. The rates of return of the market portfolio and the T-Bills are 12% and 2% respectively. A. #Calculate the intrinsic value per share of Mago Limited's stocks. (5 marks) t t + B. Further to part A, if Mago Limited's dividend payout ratio is 100% instead of 60%, the intrinsic value of the stock would be the same as the intrinsic value in part A. + t Do you agree with the statement above? Explain your answer without any further calculation