Question #3: Required Rate of Return and Present Value of Growth Opportunities (16 Points Suppose that the stock of Vail Resorts Inc. (MTN) is currently trading at $242.33 per share. Earnings per share in the coming year are expected to be $7.36. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is re-invested in projects that is expected to earn a 12% rate of return per year (ROE=0.12). (a) Using the constant-growth DDM calculate the required rate of return for an investor who purchases the stock at $242.33. You can assume that the current stock trading price (Po) is equal to the current stock valuation (Vo). Round your final answer to four decimal places. [6 Points) (b) Calculate the Present Value of Growth Opportunities (PVGO). You may assume that the current trading price of the stock of $242.33 reflects its intrinsic value. Round your final answer to two decimal places. [3 Points] (c) What would happen to the stock price of Vail Resorts Inc. (MTN) if the company lowered the dividend payout ratio to 48%? Assume the required rate of return (k) is the same as what was calculated in Part (a). [7 Points)