Metatrends stock will generate earnings of $3 per share this year. The discount rate for the stock is 15%, and the rate of return on reinvested earnings also is 15%.

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: (i) 0%; (ii) 40%; (iii) 60%. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)

	Reinvestment of Earnings
	0%	40%	60%
Growth rate of dividends	%	%	%
Stock price	$	$	$

b.

Redo part (a) now assuming that the rate of return on reinvested earnings is 20%. 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.)

	Reinvestment of Earnings
	0%	40%	60%
PVGO	$	$	$