Question 2: Janet Ludlow's firm requires all its analysts to use a two-stage DDM and the CAPM model to value stocks. Using these measures, Ludlow has valued QuickBrush Company at $75 per share. She now must value SmileWhite Corporation. a. Calculate the required rate of return for SmileWhite using the information in the following table: December 2013 Company QuickBrush 1.25 $63.00 $75.00 Smile White 1.10 $45.00 Beta Market price Intrinsic value ? Note: Risk-free rate = 4%; Expected market return = 15%. Ludlow estimates the following EPS and dividend growth rates for SmileWhite: First three years: 10% per year 8.5% per year Years thereafter: b. Estimate the intrinsic value of Smile White using the table above and the two-stage DDM. Dividends per share in 2013 were $1.46.