Question two - problem solving questions (55 points) Part I: Real Co. just paid a dividend of $1.40. Its stock has a required rate of return, 15%, and investors expect the dividend to grow at a constant 12% rate in the future. (a) What is the stocks' intrinsic values? (20 points) (b) How much would be the dividend at year 4? (15 points) Part II: Swiss Creative Technology Company has a beta of 1.40. The risk- free rate of return is 1.60 percent and the market rate of return is 6.40 percent. What is the CAPM cost of equity? (20 points)