02.4- You are trying to value Thundervroom Inc., a promising start-up electric car manufacturer. You estimate that the growth of the company will happen in three distinct phases. You think that the first high-growth phase of 20%/year will last until year 7. After that, you estimate an intermediate growth rate of 12%/year until year 10. After that, the long-term growth should be coherent with a company that pays 60% of their profits as dividends and can earn 12%/year on new investments. You estimate that the required rate of return should be 9%/year. The company does not currently pay a dividend, but you expect that they will start with a yearly dividend of $2.00 at year 5.

a) what is the current value of the company according to your assumptions

b) what is the present value of growth opportunities (pvgo) if you expect earnings to be 1.60$ per share

c) The current share price is actually 45$ which makes this company (under/over valued)Wha yearly return can you expect on your investment if you buy shares today and sell them at year 5? assume that the shares will be fairly valued at that point.