Hamegh vegetables company is in the business of growing tomatoes and exporting the product to the neigboring country. The business is not in itself very profitable because of high transportation costs. However, to help Hamegh vegetables company to remain in business, the Famous Government has agreed to pay whatever amount is necessary that the Hamegh vegetables company's book return on equity to be 11%. Hamegh vegetables company is expected to pay a $5 dividend at the end of the year and plowing back 50% of its earnings per year. a. If Hamegh vegetables company continues on this growth trend what is the expected long-run rate of return from purchasing the stock at $120? What part of the $120 price is attributable to the present value of growth opportunities? b. Now assume that with respect to recovery plan Hamegh vegetables company will start plowing back 80% of its earnings for the coming 4 years and starting from year 5 will start plowing back 50% again. What will be the Hamegh vegetables company's stock price if the recovery plan apply.