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Milkiades Chacholiades reports the following information for Olympus Corp. The growth rate is 10%, the retention ratio of 0.8 is to be maintained indefinitely. The

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Milkiades Chacholiades reports the following information for Olympus Corp. The growth rate is 10%, the retention ratio of 0.8 is to be maintained indefinitely. The current earnings per share is $5. If the risk free rate is 4%, the market risk premium is 10% and Olympus has the same beta as the market, what is the fair value of Olympus? a. $27.50 b. None c. $5.5 d. $5.70 e. $25.00

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