ered of stion The Best Diamond company forecasts an earnings per share of 300 USD for the next year. Analysts expect that the company will pay a dividend of 90 USD using its usual dividend payout ratio. The return on equity is 15%, the expected return of market portfolio is 16%, the risk free rate is fix at 8%, and the equity beta for the firm is estimated to equal 0,8. Calculate the fair price of your common stock if the firm decides to plowback 50% of the earnings in the next year instead of paying the forecasted 90 USD dividend. In the third year the payout ratio increases to the original level and remains stable for eternity. There are six true sentences below, find them! (But you can only choose six!) De Select one or more a. The second years EPS is 331,5. ob. The new price for the share is 2094,58. c. The required return for the share is 14%. d. The original g growth rate is 9%. e. The PVGO decreased due to the changes in dividend payments because the reinvesting of profit into the firm generates a lower return thanr. f. The second years dividend is 96,75. g. The original PVGO for the share is 224,36. h. The required return for the share is 16%. 1. The original PVGO is 1682,69. J. The new price for the share is 2299,62. k. The original price for the share is 2307,69 D. The original gis 10,5% 0 Select one or more: a. The second years EPS is 331,5. b. The new price for the share is 2094,58. C. The required return for the share is 14%. d. The original g growth rate is 9%. e. The PVGO decreased due to the changes in dividend payments because the reinvesting of profit into the firm generates a lower return than r. f. The second years dividend is 96,75. g. The original PVGO for the share is 224,36. h. The required return for the share is 16%. 1. The original PVGO is 1682,69. j. The new price for the share is 2299,62. k. The original price for the share is 2307,69. 1. The original g is 10,5% m. The PVGO decreased due to the changes in dividend payments because investors prefer growth instead of dividends. n. The original dp is 70%