You expect Scoops Magical Ice Cream Shop to have a ROE of 15%, a beta of 1.55, an expected earnings per share (E₁) of $4.25, and a stable dividend payout ratio of 40%. The expected market risk premium is 9%, and the 10-year Treasury note yield is 2.50%.

1. Calculate the intrinsic value estimate of Scoops Magical Ice Cream Shop (V₀) according to the constant growth DDM.
2. Calculate the Present Value of Growth Opportunities (PVGO).
3. Calculate the justifiable forward P/E and trailing P/E according to the constant growth DDM.
4. If the expected ROE for Scoops Magical Ice Cream Shop has been revised downward from 15% to 12%, recalculate the V_0, PVGO, and the justifiable forward P/E and trailing P/E. Discuss whether these changes in V_0, PVGO, and the justifiable forward P/E and trailing P/E are consistent with the concepts.