Bitfit Coin (BFC) corporation has just paid 50 cents annual dividend. BFC plans an investment program, which will allow the company to grow its assets by 12 % per year for the next five years. The investments are financed by the retained earnings. Starting from year 6 onwards, the growth rate is expected to return to the industrys average 5% growth rate and remain at this level in the foreseeable future. You are planning to purchase the BFC stock and estimate that the appropriate discount rate is 10%.

1. What price would you be willing to pay for the BFC stock?
2. Find the part of this price, which is due to the growth opportunities, also known as the Present Value of Growth Opportunities (PVGO).