Answers to first 4 bare bolded, just need last two answered

- Now you are analyzing two new companies, Cash Cow and Growth Prospects. Assume the required rate for each is 10.0% and that both could pay a $4 dividend in perpetuity. I 7. What is the intrinsic value of the stocks? Round to two decimal places. $40 8. Now suppose that Growth Prospects increases their plowback ratio from 0% to 60% because they have an opportunity to reinvest earnings and earn 16%. What is the new dividend that will be paid? Round to two decimal places. $1.6 (Assuming earnings per share to be $4) 9. What is the new growth rate (g) of Growth Prospects given a plowback ratio of 60%? Enter as decimal and round to three decimal places. 9.6% 10. Assuming Growth Prospects will continue to have these investment opportunities in perpetuity, what is the new intrinsic value of the stock? $400 11. What is the Present Value of Growth Opportunities (PVGO) of Growth Prospects? - 12. To be more realistic, you decide to use a two-stage DDM. Imagine that Growth Prospects expect 9% growth for only the next 2 years, and then the growth will slow to a 3% rate. Assume the required rate is still 10% and that the most recent dividend was $2. What is the new intrinsic value of Growth Prospects? Round your answer to two decimal places