MTG Company has earnings of $4.60 per share in 2019. It has decided to distribute, as dividends, two thirds of its earnings. Analysts forecast that MTG would earn a return on equity of 7% on its investments. If investors required a 14% rate of return, 1. Calculate the actual growth rate. What is the value of MTG at the end of 2019? Explain (4 marks) 2. What fraction of MTGs value comes from growth opportunities? (2 marks) 3. Draw a table showing earnings per share, dividends, plowback, growth and price for no growth and growth scenarios. (3 marks) 4. Suppose that MTG could earn 13% on its investments and its payout ratio is now 20%, 5. Calculate the actual growth rate. What is the value of MTG at the end of 2019? (4 marks) 6. What fraction of MTGs value comes from growth opportunities? (2 marks) 7. Draw a table showing EPS, dividends, plowback, growth and price for no growth and growth scenarios. (2 marks) 8. Based on the results obtained, provide a discussion on the relationship between the MTGs equity value and its reinvestment policy. (3 marks)