Question 14: XYZ corps expects to earn $4.3 per share next year and plow back 41.86% of its earnings ( i.e it expects to pay out a dividend of \$2.5 per share, representing 58.14% of its earnings). The dividends are expected to grow at a constant sustainable growth rate and the stocks are currently priced at $30 per share. How much of the stock's $30 price is reflected in Present Value of Growth Opportunities (PVGO) if the investors' required rate of return is 20% ? (Hint: PVGO = value with growth - value with no growth when no earnings is plowed back)