Suppose that your start-up company recently had a free cash flow to equity of $2 per outstanding share (assume this $2 per share is not part of the company's valuation). You expect your company to grow at a rate of 15% over the next three years followed by a perpetual growth rate of 5%. The present value of the dividends during the initial growth stage is The present value of the dividends during the second growth stage is The price an investor with a discount rate of 10% should be willing to pay per share is (a) $7.46;$59.60;$67.06 (b) $7.46;$48.08;$55.54 (c) $6.57;$48.08;$54.65 (d) $6.57;$59.60;$66.17 Lowe's has an earnings per share of $10.00 during 2022. An analyst is uncertain of whether to categorize Lowe's broadly as a retail store where the benchmark PE ratio of 20 would imply its share price should be , or whether he should categorize Lowe's as a home improvement store where the benchmark PE ratio of 15 would suggest that its share price should be If we use a relative valuation approach we know whether Lowe's is truly under or overpriced, but only its valuation relative to its peers. (a) $200;$150; can (b) $150;$200; can (c) $150;$200; cannot (d) $200;$150; cannot