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I have parts of these questions correct, just need help on the blanks, thanks! Metatrend's stock will generate earnings of $4 per share this year.

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I have parts of these questions correct, just need help on the blanks, thanks!

Metatrend's stock will generate earnings of $4 per share this year. The discount rate for the stock is 10%, and the rate of return on reinvested earnings also is 10%. a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: (1) 0%; (ii) 30%; (iii) 50%. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations.) 0% Reinvestment of Earnings 30% 0 % 3 % 50% 5% Growth rate of dividends Stock price $ 40 40 $ 40 b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%. What is the present value of growth opportunities (PVGO) for each reinvestment rate? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answer to 2 decimal places.) 0% $ Reinvestment of Earnings 30% $ 50% $ PVGO 0 $ Castles in the Sand generates a rate of return of 12% on its investments and maintains a plowback ratio of .50. Its earnings this year will be $5 per share. Investors expect a 10% rate of return on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Price P/E ratio $62.50 12.5 b. Find the price and P/E ratio of the firm, if the plowback ratio is reduced to .40? (Do not round intermediate calculations. Round your answers to 2 decimal places.) $ $ Price P/E ratio A company will pay a $3 per share dividend in 1 year. The dividend in 2 years will be $5 per share, and it is expected that dividends will grow at 2% per year thereafter. The expected rate of return on the stock is 16%. a. What is the current price of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current price b. What is the expected price of the stock in a year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected price 35.71

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