3.A company with earnings per share of $4.23 has announced that it will not pay dividends for the foreseeable future. After this announcement the stock price dropped by $6 and is currently trading for $57 per share. Investors required rate of return is 7.50%. How much of the stock price is due to growth opportunity?

Select one:a. $56.40b. $0.60c. $52.77d. $0 since the company announced that there will be no growth in the dividend yield.e. None of the above.