Imagine if firm that paid out 100% of its income as dividends. This frim would not be re-investing for growth but

just treading water usingthe depreciation amount to replace assets EPS = 1.40 Dividend = .49 ROE = 15%

Required Return = 12% Growth Rate = 9.75%

Without growth this stock would be valued as a preferred stock, give me that value.

The value of the growth opportunities would be equal to the

(retained earnings *((ROE/Required Return)-1))/(required return - Growth Rate)

Please complete the table below.

Aurora Foods Valuation Earnings per Share Dividend ROE Required Return Retained Earnings Retention Ratio Growth Rate Value without Growth Value of Growth Opportunities Value of Stock Constant Growth DDM Value Aurora Foods Valuation Earnings per Share Dividend ROE Required Return Retained Earnings Retention Ratio Growth Rate Value without Growth Value of Growth Opportunities Value of Stock Constant Growth DDM Value