In relation to the table below what is the Price of stock 1 The growth rate and price of stock 2 The market capitalisation rate of stock 3 Suppose stock 2 reduces the payout ratio from 100% to 90% what would the present value of growth opportunities?

 

Stock price Next period dividends per share Market capitalization rate (%) Return on Equity (ROE) Payout ratio (%) Growth rate (%) Table 2 Stock 1 2.00 12% 14% 100% 0.00% Stock 2 1.50 8% 9% 50% Stock 3 12 0.70 6% 100% 0.00%