(Ref. Unit 3 Slides 7,16,26 ) The current price of a company's stock is $150 per share (=P0 ). The company has a (forward) P/E ratio of 30(=PO/E1). The required rate of return on the stock is 8%. Assume that the stock is fairly priced. A. (1 point) What is the company's earnings per share (EPS) in the next year ( t= 1)? - Hint: Find the next year's EPS (E1) using the P/E ratio and stock price P0. B. (1 point) What is the company's value of assets in place (VAIP)? C. (1 point) What percentage of the stock price is represented by the company's growth opportunities (= PVGO)? D. (1 point) Suppose that the company will pay a dividend of $1 per share in the next year (t=1). What is the company's plowback ratio? E. (1 point) According to the constant growth DDM, what is the implied growth rate of the company's dividends? - Hint: Re-arrange the constant growth DDM formula to solve for g. Note: You must show your calculation steps briefly and clearly