Suppose you gathered the following information regarding Beta Corp: Current year (2015) EPS = $4 Plowback ratio = 0.4 Required return = 12% Current stock price = $50 Dividend growth rate in the foreseeable future = 5% .Given that dividends are paid out at the end of year,

i) Estimate intrinsic value of the companys stock at end of 2015.

ii) Comment on whether the company is currently over-valued, under-valued or fairly valued

iii) Estimate present value of growth opportunities (PVGO)

iv) Estimate the fraction (percentage) of the companys leading P/E ratio that comes from PVGO