(TCO D) Find the intrinsic value of the stock of company ABC

(TCO D) Find the intrinsic value of the stock of company ABC using the following data:risk free rate = 5%market risk premium = 8%Expected market return = risk free rate + market risk premiumbeta = 0.9ROE = 12.5%dividend payout ratio = 0.22Dividends for the next 4 years are expected to be .59, .67, .76, .85. Subsequent growth will be at the computed growth rate, g.Suggestion: 1. Find g from ROE and payout ratio2. Find k from CAPM3. Find price of ABC 4 years out using the constant growth DDM4. Find intrinsic value by discounting each annual dividend by (1+k)^n where n=number of years, summing them and adding the price in step 3 discounted by (1+k)^4.