12.1) A person is considering buying the stock oftwo home health companies that

12.1) A person is considering buying the stock oftwo home health companies that are similar in all respects exceptthe proportion of earnings paid out as dividends. Both companiesare expected to earn $6 per share in the coming year but Company D(for dividends) is expected to pay out the entire amount asdividends while Company G (for growth) is expected to pay out onlyone-third of its earnings or $2 per share. The companies areequally risky and their required rate of return is 15 percent. Dsconstant growth rate is zero and Gs is 8.33 percent. What are theintrinsic values of stocks D and G?