Question 3 Rentville just paid a dividend of $10. Rentville's dividend growth rate is expected to be at 10% per annum for 3 years, after which dividends are expected to grow at a constant rate of 8% per annum forever. The required return on Rentville's stock is 12%. (a) What is intrinsic value of the stock today? (6 marks) (b) Calculate the expected capital gains yield for the first year. (4 marks)