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Question [10 marks] You find the following data about ABC Inc. in the financial press. The Company's common stock is selling at $20.00 per share. The Company just paid a dividend of $2.00 per common share. The Company pays annual dividends. . The Company's retention ratio has been stable and 20%. . The Company's ROE has historically been 20%. The Company's beta is 1.5. Assumptions The growth rate for the Company's dividend will be 10% per year for the next two years . The dividend growth rate after the initial 2 years will be at the sustainable growth rate. . At the end of year 2 you anticipate that the Company will pay a special dividend of $0.50 per common share. This dividend is paid only once and is in addition to the regular stream of dividends. a. What is the intrinsic value of the stock? (5 marks] b. What long-term growth rate does the market expect from the company? Assume the required rate of return you calculated in part a) is the correct value to use for this calculation. (5 marks]