Suppose you have collected the following information about Beta Corp:

Plowback ratio = 0.4, Current year (2015) EPS = $4 ,Required return = 12% ,Current stock price = $50, Dividend growth rate in the foreseeable future = 5%

(a) Dividend is paid at the end of the year,

1)Compute the intrinsic value of the company's shares at the end of 2015.

2)Comment on whether the company is currently overvalued, undervalued or fairly valued

3)Compute present value of growth opportunities

4)Estimated percentage of leading price-to-earnings ratios of companies from PVGO