You find the following data about ABC Inc

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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.

What is the intrinsic value of the stock? 

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.