Suppose today you are considering whether to buy Stock Theta, and you want to do some basic analysis before buying the shares. By reading the firms most recent Balance Sheet, you find the following information: Net Income is $5,000,000, Total Shareholders Equity is $25,000,000, Total Assets is $40,000,000. From other publicly available sources, you further obtain the following information: the most recent earnings per share (EPS) is $3, the dividend payout ratio is 60%, and the firms beta is 1.4. The firms shareholders just receive the most recent dividends based on the above EPS and payout ratio today. Assume that the risk-free rate is 4%, and the market portfolio return is 16%.

Please answer this question and show calculations:

(e) Today, if this firm decides to pay out all its earnings as dividends forever and there is no any change in the amount of dividends, what would be the corresponding intrinsic value of this stock? Based on your calculation and results from (d), what would be the present value of growth opportunities (PVGO) for this stock?