Suppose the risk-free interest rate is 0.50% and the market risk premium is 9%. A company, NZ1, has a beta of 1.3. The dividend per share of $1.20 was just paid to the investors. The dividend growth is 5% per year in the next three years and 3% per year for all years after that. The retention percentage rate is 50%. The stock is fairly priced.

A). What is the intrinsic value of NZ1 stock?

B). Calculate the present value of growth opportunities for NZ1.