The current price of a company is $40/share. The company is not expected to pay dividends during the following four years. Furthermore, analysts are forecasting EPS to go to $5.00 in four years. Similarly, the PE-multiple is estimated will be 18 in four years.

a) Find the expected return or IRR, the expected price return, the expected dividend return, using a required rate of 12 %, find the intrinsic value, and finally is the company undervalued?