Next year's earnings are estimated to be $3. The company plans to reinvest 30% of its earnings at 20%. If the cost of equity is 10%, what is the present value of growth opportunities?

$22.50

$10.10

$23.50

$21.50

A firm has a tax burden of 0.8,a leverage ratio of 1.8, an interest burden of 0.7, and a return-on-sales ratio of 11%. The firm generates $2.44 in sales per dollar of assets. What is the firm's ROE?

15.0%

27.1%

5.4%

18.8%