Question 44 Use the Edwards-Bell-Ohlson (EBO) valuation model to estimate the intrinsic value of the stock. Show your calculations and provide all of the requested components. Tangok Vooo Bo + + 1 Bilt (1+)' k-(1-Parg) rang At the end of last year book value of equity was equal to $35 per share. Required Rate of Return on equity (k) is 11%. You forecast that ROE will be 18% in year 1 and 13% in year 2. After that you expect that ROE will level off at 12% and will remain so indefinitely. The dividend payout ratio is expected to be 30% for the explicit forecasting period and 60% for the perpetuity. a) What is the implied long-term growth rate? (2 points) b) What are the Abnormal Earnings and end-of-period Book Values of Equity for each period of the explicit forecasting periods? (3 points) c) What is the Terminal Value of Abnormal Earning at the end of the explicit forecasting period? (3 points) d) What is the total Intrinsic Value of the stock in present value terms? (2 points)