1.A person is considering buying the stock of two homehealth companies that are

1.A person is considering buying the stock of two homehealth companies that are similar in all respectsexcept for the proportion of earnings paid out as dividends. Bothcompanies are expected to earn $6 pershare in the coming year but Company D (for dividends) is expectedto pay out the entire amount asdividends while Company G (for growth) is expected to pay out onlyone-third of its earnings or $2 pershare. The companies are equally risky and their required rate ofreturn is 15 percent. Ds constantgrowth rate is zero and Gs is 8.33 percent. What are theintrinsic values of Stocks D and G?