Suppose that, at the end of 2015, Value Line projects the following for XYZ stock: Year Dividend (-50% of earnings 2016 $0.45 2017 $0.55 2018 $0.79 EPS $0.90 $1.10 $1.58 Value Line forecasts that the dividend growth rate will level off and stay constant after 2018. In addition, Value Line believes that the dividend payout ratio will remain at 0.5 and the ROE will remain at 15%. a. Compute a reasonable estimate of the steady-state (post-2018) growth rate in dividends. [4 points] b. Suppose that the beta for XYZ is 1.6, the risk-free rate is 5%, and the market risk premium is 7.6%, and these are expected to remain constant for the foreseeable future. What is the market rate of capitalization for XYZ stock? [5 points] c. Using the dividend discount model, compute the intrinsic value of XYZ stock as of the end of 2015. [6 points]