(1) A person is considering buying the stock of two home healthcompanies that ar

(1) A person is considering buying the stock of two home healthcompanies that are similar in all respects except the proportion ofearnings paid out as dividends. Both companies are expected to earn$6 per share in the coming year but company D (for dividends) isexpected to pay out the entire amount as dividends while Company G(for growth) is expected to pay out only one-third of its earningsor $2 per share. The companies are equally risky and theirrequired rate of return is 15 percent. Ds constant growth rate iszero and Gs is 8.33 percent. What are the intrinsic values ofstocks D and G?