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18. Summer Co. expects to pay a dividend of $4.00 per shareone year from nowout of earnings of $7.50 per share. If the required rate

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18. Summer Co. expects to pay a dividend of $4.00 per shareone year from nowout of earnings of $7.50 per share. If the required rate of return on the stock is 15% and its dividends are growing at a constant rate of 10% per year, calculate the present value of growth opportunities for the stock (PVGO). A. $80 B. $30 C. $50 D. $26

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