Homework 4 - Part 1 Est Length: 2.00.00 Yilan Hu: Attempts Page 1: Question 7 (1 point) ARN has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of 20. Its earnings this year will be $3 per share. Investors expect a 9% rate of return on the stock What is the present value of growth opportunities for ARN? Round your answer to two decimal places. Your Answer Answer Question 8 (1 point) FinCorp's free cash flow to the firm is expected to be $205 million. The firm's interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increases by S3 million. What is the market value of equity if the FCFE IS projected to grow at 37 indefinitely and the cost of equity is 13% Enter your answer in millions, rounded to one decimal place les 2.1 for $2.1 min