The current price of a company's stock is $150 per share (= P0). The company has a forward P/E ratio (= P0/E1) of 30. The required rate of return on the stock (= k) is 8%. Assume that the stock is fairly priced.

1. (1 point) What is the company's earnings per share (EPS) in the next year (t = 1)?
   • Hint: Find the next year's EPS (E1) using the forward P/E ratio and current stock price.
2. (1 point) What is the company's value of assets in place (VAIP)?
3. (1 point) What percentage of the stock price represents the company's growth opportunities (= PVGO)?
4. (1 point) Suppose the company will pay a dividend of $1 per share next year (t = 1). What is the company's plowback ratio (= b)?
5. (1 point) According to the constant growth DDM, what is the implied growth rate (= g) of the company's dividends?
   • Hint: Re-arrange the constant growth DDM formula to solve for g.

Note: You mustshow your calculation steps brieflyand clearly.

Need help with 3-5