Benchmark Metrics Inc. (BMI), an all-equity financed firm, reported EPS of $5.49 in 2013. Despite the economic downtum, BMI is confident regarding its current investment opportunities. But due to the financial crisis, BMI does not wish to fund these investments externally. The Board has therefore decided to suspend its stock repurchase plan and cut its dividend to S0.71 per share (vs. almost S2 per share in 2012), and retain these funds instead. The firm has just paid the 2013 dividend, and BM plans to keep its dr end at 071 per share in 2014 as well n subsequent years it expects s growth o portunities o slow a will sti ve able o und its gro th intema y with a target 43% dividend payout ratio and reinitiating its stock repurchase plan for a total payout rate of 58%. (All dividends and repurchases occur at the end of each year.) Suppose BMI's existing operations will continue to generate the current le nvestments will account or a ture earnings growth if any Finally, assume BM l's equity cost of capital is 10%. a. Estimate BMI's EPS in 2014 and 2015 (before any share repurchases) b. What is the valuc of a share of BM at the start of 2014 (end of 2013)? Hint Make sure to round all intermediate calculations to at least four decimal paces. vel of earrings per share in the future Assume further that the return on new investment is 15%, and that rer