Farm Supply Company projects annual earnings of $$1\mathrm{.}25$ per share, a return on

equity of $10\%$ and a earnings retention ratio of $50\%.$ Its market capitalization rate

is $17\%.$

Part $1$

What is the growth rate of dividends?

Correct

$g=$ROE$*b$

$=0\mathrm{.}1*0\mathrm{.}5$

$=0\mathrm{.}05$

Part $2$

What is the current stock price?

Part $3$

What is the price

Part $4$

$($ Attempt $2/10$ for $10$ pts$.$

What is the preseqt value of growth opportunities?