Question 3 (11%) The MY5's dividends per share are expected to grow indefinitely by 8% per year. It has a beta of 1.2. The market return and risk-free rate are 12% and 4% respectively. (a) If the coming year-end dividend is $6, what must the current stock price be according to the dividend discount model? (4%) (b) If the expected earnings per share are $8 what is the implied value of the ROE on future investment opportunities? (3%) (c) How much is the market paying per share for growth opportunities? (4%)