akeover Target is run by entrenched management that insists on reinvesting $72\%$ of its earnings in projects that provide an ROE of $11\%,$ despite the fact that the firm$$s capitalization rate $($i$.$e$.,$ required return, R or k$)$ is $15\%.$ The firm$$s year$-$end $($Year $1)$ dividend will be $$2$ per share, paid out of earnings of $$5$ per share. The dividends of the company are growing at a constant rate of $$g$$ per year for the foreseable future where g$=$ ROE x b$.$ At what price will the stock sell? What is the present value of growth opportunities? Is there a way we can increase the market value of this stock?