Problem 7-20 Constant-Growth Model (LO2) Metatrend's stock will generate earnings of $6 per share this year. The discount rate for the stock is 15%, and the rate of return on reinvested earnings also is 15%. a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: (i) 0%; (ii) 40%; (iii) 60%. Note: Do not round intermediate calculations. Enter the growth rates as a whole percent. b. Redo part (a) now assuming that the rate of return on reinvested earnings is 20%. What is the present value of growth opportunities for each reinvestment rate? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Problem 7-20 Constant-Growth Model (LO2) Metatrend's stock will generate earnings of $6 per share this year. The discount rate for the stock is 15%, and the rate of return on reinvested earnings also is 15%. a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: (i) 0%; (ii) 40%; (iii) 60%. Note: Do not round intermediate calculations. Enter the growth rates as a whole percent. b. Redo part (a) now assuming that the rate of return on reinvested earnings is 20%. What is the present value of growth opportunities for each reinvestment rate? Note: Do not round intermediate calculations. Round your answers to 2 decimal places