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Reliable Electric had an EPS of $2.22 in 2008. The retention ratio is 51.00%. The company is expected to earn an ROE of 12.49% on

Reliable Electric had an EPS of $2.22 in 2008. The retention ratio is 51.00%. The company is expected to earn an ROE of 12.49% on its investments and the required rate of return is 10.37%.

a)Calculate the sustainable growth rate.

b)Estimate the value of the company's stock at the beginning of 2009.

c)Calculate the present value of growth opportunities.

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