Round your answers to 2 decimal places (only if necessary). FPS economic Use the following information to answer the question(s) below. Nielson Motors, an all-equity financed firm, has just reported#PDFUNXANA. Despite downturn, Nielson is confident regarding its current investment opportunities, but due to the current financial crisis, Nielson does not wish to fund these investments external FaizSon's board has therefore decided to suspend its stock repurchase plan and cut its dividend to $1 per share (from its previous level of $2 per share) and retain these funds instead. The firm just paid its current dividend of $1 per share and expects to keep its dividend at $1 per share next year as well. In subsequent years, it expects its growth opportunities to slow, and it will still be able to fund its growth internally with a target 40% dividend payout ratio, and reinitiating its stock repurchase plan for a total payout rate of 60%. All dividends and repurchases occur at the end of each year. Nielson's existing operations are expected to generate the current level of earnings per share in the future. Assume that the return on new investments is 20% and that reinvestments will account for all future earnings growth. Nielson's current equity cost of capital is 10%. a) What is Nielson's expected EPS in two years? b) What is Nielson's current stock price? Round your answers to 2 decimal places (only if necessary). FPS economic Use the following information to answer the question(s) below. Nielson Motors, an all-equity financed firm, has just reported#PDFUNXANA. Despite downturn, Nielson is confident regarding its current investment opportunities, but due to the current financial crisis, Nielson does not wish to fund these investments external FaizSon's board has therefore decided to suspend its stock repurchase plan and cut its dividend to $1 per share (from its previous level of $2 per share) and retain these funds instead. The firm just paid its current dividend of $1 per share and expects to keep its dividend at $1 per share next year as well. In subsequent years, it expects its growth opportunities to slow, and it will still be able to fund its growth internally with a target 40% dividend payout ratio, and reinitiating its stock repurchase plan for a total payout rate of 60%. All dividends and repurchases occur at the end of each year. Nielson's existing operations are expected to generate the current level of earnings per share in the future. Assume that the return on new investments is 20% and that reinvestments will account for all future earnings growth. Nielson's current equity cost of capital is 10%. a) What is Nielson's expected EPS in two years? b) What is Nielson's current stock price