2 Metatrend's stock will generate earnings of $5 per share this year. The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%. a-1. 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%. (Round your answers to 2 decimal places.) % g 0 a-2. 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: 40%. (Round your answers to 2 decimal places.) % g Po 1 points eBook References a-3. 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: 60%. (Round your answers to 2 decimal places.) 2 g % P 0 b-1. Assume that the rate of return on reinvested earnings is 20%. 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%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) g % Po 1 points eBook References 2 b-2. Now assume that the rate of return on reinvested earnings is 20%. 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: 40%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) % g Po b-3. Now assume that the rate of return on reinvested earnings is 20%. 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: 60%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) g % Po 1 points eBook References b-4. What is the present value of growth opportunities for each reinvestment rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2 PVGOO PVGO40 PVGO60 c. Considering your answers to parts (a) and (b), can you briefly state the difference between companies experiencing growth versus companies with growth opportunities? Company can fully take advantage of growth opportunities, only if the return on reinvested earnings is than the discount rate. When the aforementioned happens the NPV of the firm's new projects is and PVGO is 1 points eBook References