Questions (1-2) are based on the information that follows Net earnings for a constant dividend growth firm are currently SB0 million and expected to grow forever at 12.5%. The firm has a policy of paying out a constant 40% of eamings as dividends. Shares outstanding are 8 million R-15% and Rer-5%. The firm's cost of capital is 17.5% and is expected to be unchanged for the indefinite future. 1. What should be the current value of the firm in millions of $)? (a) $650.00 (b) $800.00 (c) $220.00 (d) $264.00 (e) $720.00 b d e