Please Use the first photo to answer the second. (The first explains how to approach a different problem same format) Don;t worry about the drop down answer questions.

Problem I want you to solve, if all correct, will upvote!

Explanation The year-6 earnings estimate is based on growth rate of 0.15(10.35)=0.098. a. V5=kgD6=0.190.098$10.992=$118.83V0=(1+k)5V5=1.195$118.83=$49.80 b. The price should rise by 19% per year until year 6 : because there is no dividend, the entire return must be in capital gains. Therefore the price in one year should be $59.26. c. The price should rise by 19% per year until year 6 : because there is no dividend, the entire return must be in capital gains. Therefore the price in two years should be $70.52 d. The year-6 earnings estimate is based on growth rate of 0.15(10.15)=0.1275. V5=kgD6=0.190.1275$4.840=$77.43=3 V0(1+k)5V5=1.195$77.43=$32.45 The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the years. Its latest EPS was $15.50, all of which was reinvested in the company. The firm's expected ROE for the next five years year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6 , the firm's ROE on new inv is expected to fall to 14%, and the company is expected to start paying out 35% of its earnings in cash dividends, which it will to do forever after. DEQS's market capitalization rate is 22% per year. a. What is your estimate of DEQS's intrinsic value per share? (Do not round intermediate calculations. Round your answer t decimal places.) Answer is complete but not entirely correct. b. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next yea your dollar value to 2 decimal places.) Because there is , the entire return must be in Answer is complete but not entirely correct. c. What do you expect to happen to price in the following year? (Round your dollar value to 2 decimal places.) d. What is your estimate of DEQS's intrinsic value per share if you expected DEQS to pay out only 15% of earnings starting in (Do not round intermediate calculations. Round your answer to 2 decimal places.)