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need help to solve these two questions ! 25. Grott and Perrin, Inc. has expected earnings of $3 per share for next year. The firm's

need help to solve these two questions ! image text in transcribed
25. Grott and Perrin, Inc. has expected earnings of $3 per share for next year. The firm's ROE is 20% and its earnings retention ratio is 60%. If the firm's market capitalization rate is 15%, what percentage of its share price is attributed to the present value of its growth opportunities (PVGO)? A. 78% B. 60% C. 40% D. 50% 26.XYZ Company has an expected ROE of 25%. The dividend growth rate will be if the firm follows a policy of paying 20% of earnings in the form of dividends. A) 5% B) 20% C) 25% D) 18%

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