Question 8 You have the following information on the firm, CYT finance Inc. Next year projected EPS: $10 Retention ratio: 10% Return on Equity (ROE): 10% Discount rate of stock (r_e): 5% You collected Price-Earnings ratios (P_0/EPS_1), discount rates of stocks (c_e), and NPVGO/EPS_1 of 30 companies in the same financial industry and ran a regression. You got the following regression equation. P_O/EPS_1 = 0.015+1.2* (1/r_e)+ 0.9* (NPVGO/EPS_1) What is the fair value of the stock of CYT finance inc. if you want to use the regression result for the valuation? Hint: compute the NPVGO based on the Gordon's constant growth dividend model. 0 242.65 262.65 O 282.65 302.65