You are a financial analyst at Bank of America, and you have collected following information for Lotus Tech Company. The company has beta of 1.25 and a ROE of 20%. The dividend payout ratio is 50%. Last twelve-month earnings were $4 per share. The annual dividend was just paid. The consensus estimate of the coming years market return is 13%, and T-bills currently offer a 5% return.

1a. What is the intrinsic value of the stock? (Input format: $15.32) 1b. What is PVGO? (Input format: $15.32) 1c. Suppose your research convinces you that company will announce momentarily that it will immediately change its dividend payout ratio to 40%. Find the intrinsic value of the stock. (input format: $15.32)