Ramsey Trophies, Inc (RTI) is an all-equity company (i.e. has no debt). RTI's total cash flow they expect to pay to their shareholders in the form of dividends during the next year will be $60 million. Following that, dividends paid to shareholders is expected to grow for 4 years at 1 1% per year, then the dividends will grow in perpetuity at 4.5% per year. Expected returns by investors holding shares in companies similar to RTI is 1 1.8%. a) What is the value Ramsey Trophies, Inc today? Show your work. b) RTI is considering acquiring one of its vendor companies, Collegiate Logo Stickers, Ltd (CLS). CLS is a young start-up company that produces weather-proof college logo stickers, and this would be a nice branding/combination opportunity for RTI. CLS's expected cash flow to shareholders next year is $4 million, with subsequent cash flows expected to grow at 15% per year for the next 5 years, then grow at 10% per year for the 2 years after that. At that point the cash flows to shareholders will grow 4.5% per year in perpetuity. RTI's best estimate for the opportunity cost of funds for an investment in a company like CLS is 13.6%. Value Collegiate Logo Stickers as a stand-alone company