ABC company forecasts a $5.00 dividend (per share) can be paid next year if it pays 100% of its earnings as dividends. Instead of paying out all the earnings as dividends, ABC decides to plowback part of the earnings at the firm's return on equity of 20%. Suppose the discount rate is 8%, please answer the following two questions based on the given information: 14. If the present value of growth opportunities (PVGO) is going to be $37.5, then the plowback ratio is A. 10% B. 15% C. 20% D. 25% 15. If you are the CEO of ABC company and your goal is to maximize shareholders' wealth, which of the following plowback ratio will you choose (Hint: To maximize shareholders' wealth, the CEO needs to maximize the current stock price.) A. 10% B. 15% C. 20%