Suppose the risk-free interest rate is 1% and the market risk premium is 8%. A company, NZ1, has a beta of 1.5. The dividend per share of $1.50 was just paid to the investors. The dividend growth is 5% per year in the next two years and 4% per year for all years after that. The retention percentage rate is 40%. The stock is fairly priced. a. What is the expected return of NZ1 stock using the CAPM? (4 marks) b. What is the expected price of NZ1 stock in two years? (9 marks) c. What is the intrinsic value of NZ1 stock? (8 marks) d. Calculate the present value of growth opportunities for NZ1. (9 marks)