Historically, Firm $1$ paid the same dividend per share of $1\mathrm{.}50$ every year. The retention ratio of firm $1$ was $0\%.$ The

equity cost of capital is $20\%,$ and return on equity is $25\%.$ Suppose now Firm $1$ decides to increase its retention

ratio from $0\%$ to $10\%.$ The present value of growth opportunities $($PVGO$)$ for Firm $1$ is$?$

Select one:

a$.0\mathrm{.}21$

b$.1\mathrm{.}00$

C$.0\mathrm{.}45$

d$.1\mathrm{.}05$

Enterprise value equals?

Select one:

a$.$ Book value of equity plus debt less cash

b$.$ Market value of equity plus debt plus cash

c$.$ Market value of equity plus debt less cash

d$.$ Market value of equity less debt less cash