10 Metatrend's stock will generate earnings of $2 per share this year. The discount rate for the stock is 10% and the rate of return on reinvested earnings also is 10% a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: 0%;00 50%, (m) 60%. (Do not round Intermediate calculations. Enter the growth rates as a whole percent.) 16 points Reinvestment of Earnings 50% 0% 60% 8 02:08:00 % Growth rate of dividends Stock price b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%. What is the present value of growth opportunities (PVGO) for each reinvestment rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Reinvestment of Earnings 50% 60% 0% PVGO Prey 10 of 17 Next >