Please show all work and explain. Correct answers are given. If you dont know how to do it correctly please just dont answer.

ELA, Inc. will pay a $$0\mathrm{.}60$ dividend today. The dividend is expected to triple in the first year and

then double in the second year. After that the dividend will grow at a constant annual rate of $5\%.$

ELA$$s capitalization rate is $11\mathrm{.}0\%.$

a$.$ What is ELA$$s intrinsic value today? $$55\mathrm{.}68$

b$.$ What do you expect will be ELA$$s stock price three years from today? $$66\mathrm{.}15$

$2.$ TPHB Inc. is expected to have earnings next year of $$7\mathrm{.}50$ per share, and it employs a plowback

ratio of $60\%.$ TPHB$$s capitalization rate is $14\%$ and it can earn $16\%$ on its investment opportunities

$($ROE$).$ Its current stock price is $$68\mathrm{.}18.$

a$.$ What is the value of TPHB$$s PVGO? $$14\mathrm{.}61$

b$.$ If TPHB reduced its plowback ratio to $40\%,$ what would you expect its current price to be$?$

$$59\mathrm{.}21$