1. Suppose that Dorkinetics will pay a dividend of $3 next year and maintains a plowback ratio of 30%. Its ROE is 10%. A. If its current market price is $75, what part of this price represents the present value of growth opportunities? B. Suppose that Dorkinetics has a new project that will require the reinvestment of 60% of earnings, starting next year. The reinvestment rate will continue at for five years, and then the reinvestment rate will fall to 40% of earnings forever, in order to maintain this project. What should happen to the market price of Dorkinetics if they announce this project today? 1. Suppose that Dorkinetics will pay a dividend of $3 next year and maintains a plowback ratio of 30%. Its ROE is 10%. A. If its current market price is $75, what part of this price represents the present value of growth opportunities? B. Suppose that Dorkinetics has a new project that will require the reinvestment of 60% of earnings, starting next year. The reinvestment rate will continue at for five years, and then the reinvestment rate will fall to 40% of earnings forever, in order to maintain this project. What should happen to the market price of Dorkinetics if they announce this project today