Problem:
Using 2-stage DDM and CAPM to value stocks:
Beta of company: 1.15
Market price: $30
Intrinsic value: ?
Risk-free rate 4.50%
Expected market return: 14.5%
EPS and dividend growth rates for first 3 years: 12% per year
EPS and dividend growth rates thereafter: 9% per year
Estimate the intrinsic value oif the company using the data and the 2-stage dividend discount model.