Number of share = 2 million

book call equity 26.34 million

value per share = $13.17

P/E ratio = 6.6

Cost of Capital= 10 %

calculate: Present Value of Growth opportunities

PVGO= Stock Price costofequityearnings \begin{tabular}{|lrrrrrrrrrr|} \hline & 2002 & 2003 & 2004 & 2005 & 2006 & 2007 & 2008 & 2009 & 2010 & 2011E \\ \hline Earnings per share, \$ & 2.10 & 0.70 & 0.23 & 0.81 & 1.10 & 1.30 & 1.52 & 1.64 & 2.00 & 2.03 \\ Dividend, \$ & 0.00 & 0.00 & 0.00 & 0.20 & 0.20 & 0.30 & 0.30 & 0.60 & 0.60 & 0.80 \\ Book value per share, \$ & 9.80 & 7.70 & 7.00 & 7.61 & 8.51 & 9.51 & 10.73 & 11.77 & 13.17 & 14.40 \\ R0E, \% & 27.10 & 7.1 & 3.0 & 11.6 & 14.5 & 15.3 & 16.0 & 15.3 & 17.0 & 15.4 \\ \hline \end{tabular}