7 Earnings per share (EPS) of Company Lexis will be $4 in next year (Year 1). Lexis plans to retain all earnings from Year 1 to Year 3, retain 50% of its earnings in Year 4 and Year 5, and retain 25% of its earnings in Year 6. The company will invest its retained earnings in projects with a return on equity (ROE) of 20%. Assume that the appropriate discount rate is 15%. 5 6 50% 25% 20% 20% You could refer to the table below to guide you through how to solve the problem. Year 0 1 2 3 4 Earnings per share $4.00 Retention ratio 100% 100% 100% 50% Dividends ROE 20% 20% 20% 20% Growth rate Discount rate 15% 15% 15% 15% PV of dividends Terminal value in year 6 PV of terminal value PV of all future dividends 15% 15% Hint: EPS year 2 = EPS year 1 * (1+growth rate year 1) The dividend in year 1 is $ Note: Please provide your answer with one decimal points in the format of xx.x (for example, if the answer is $12.34, type in 12.3) . The growth rate in year 1 is % Note: Please provide your answer with one decimal points in the format of xx.x (for example, if the answer is 12.34%, type in 12.3). The earnings per share in year 2 is $ Note: Please provide your answer with one decimal points in the format of xx.x (for example, if the answer is $12.34, type in 12.3). The growth rate in year 6 is % Note: Please provide your answer with one decimal points in the format of xx.x (for example, if the answer is 12.34%, type in 12.3). The value of a Lexis share estimated from a dividend discount model is $ Note: Please provide your answer with one decimal points in the format of xx.x (for example, if the answer is $12.34, type in 12.3)