Suppose the risk-free interest rate is 3% and the market risk premium is 7%. A Company, XYZ, has a beta 1.2. The Dividend per share of $1.1 was paid at the end of the year to investors. The Dividend growth is 6% per year in the next two years and 5% per year for all years after that.

(a) What is the expected return of XYZ stock as per CAPM?

(b) What is the expected price of XYZ stock in two years?

(c) What is the Intrinsic value of XYZ stock?