Scott Companies stock is valued correctly in the market today at $16.00 per share. They are expected to have earnings of $2.00 per share over the next year. Investors expect earnings and dividends to grow by 5% and to continue to grow at 5% forever. The firm has a policy of always paying out 60% of their earnings in dividends each year. How much value per share is being added or destroyed by the retention and reinvestment of earnings compared to the no-growth value of the firm.

Provide the following values below:

1a. No Growth Stock Value

1b. The value added from growth per share