Question 1 (16 marks) Reinvestment Rate ROC on new investment Firm A 200.00% 10.00% Firm B 100.00% 20.00% Firm C 0.00% 20.00% Firm D 20.00% 100.00% 20.00% 20,00% 20.00% 20.00% ROC on existing investments (last year) ROC on existing investments (next year) *ROC: Return on Capital 20.00% 20.00% 24.00% 20.00% Assume that the cost of capital is 20% for all companies (which are highly similar to each other in the table above. a) Calculate the expected operating income growth rate for firm A, B, C and D. (4 marks) b) Rank these firms in the order of most value growth to least value growth. (4 marks) c) Explain your answer in (b). (8 marks)