Problem 5) (15 points): As a financial analyst you are estimating intrinsic value of Nevada inc's shares and you are using two approaches. a. You know that the firm recently paid dividend of $4 per share. The firm has a beta of 1.5. The risk- free rate is 5%, and the market return is 10% Nevada currently sells for $90.00 a share, and its dividend is expected to grow at some constant rate, g forever. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 5 years? b. You also valued the stock using Market to book multiples of comparable firms. Market to book multiples (ratios) of comparable firms are given below. Assuming the market is in equilibrium and Nevada currently sells for $90.00 a share, what is Nevada Inc.'s book value per share? Comparable firms ABC DEX XOM YMT AEX Market to book 5 2 5 6 4