4. Twittre's stock will generate earnings of $12 per share this year. The discount rate for the stock is 12%, and the rate of return on reinvested earnings (ROE) also is 12%. 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: (i) 0%; (ii) 25%; (iii) 50%. B. Redo part (a) now assuming that the rate of return on reinvested earnings (ROE) is 20%. What is the present value of growth opportunities for each reinvestment rate? C. Considering your answers to parts (a) and (b), can you briefly state the difference between companies experiencing growth and companies with growth opportunities? 5. Consider the following projects Alpha and Beta. Alpha Beta Co ($30,000) ($50,000) C1 $18,000 $15,000 C2 $11,000 $24,000 C3 $8,000 $25,000 A. Calculate the NPVs for the projects, using 10% cost of capital. Which project is better based on NPV? B. Calculate the IRRs for the projects. Which project is better based on IRR? C. Which project is really better? 6. Tipler air conditioners cost $550 to purchase, result in electricity bills of $200 per year, and last for 5 years. On the other hand, Tipsy air conditioners cost $800 to purchase, result in electricity bills of $120 per year, and last for 8 years. The cost of capital is 15%. A. What is the equivalent annual cost of the Tipler model? B. What is the equivalent annual cost of the Tipsy model? C. Which model is more cost-effective