The forecasted earnings and dividends for Growth-Tech are as follows:

Year:	1	2	3	4
Book equity	10.00	12.00	14.40	15.55
Earnings per share (EPS)	2.50	3.00	2.30	2.48
Return on equity (ROE)	.25	.25	.16	.16
Payout ratio	.20	.20	.50	.50
Dividends per share (DIV)	.50	.60	1.15	1.24
Growth rate of dividends (%)	---	20	92	8

The opportunity cost of capital is r = .12. The growth rate in year 4 remains constant thereafter.

a. Calculate the value of Growth-Tech stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock value $

b. What part of the stock value reflects the discounted value of P₃, the price forecasted for year 3? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Discounted value of P₃ $

c. What part of P₃ reflects the present value of growth opportunities (PVGO) after year 3? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

PVGO $

d. Suppose that competition will catch up with Growth-Tech by year 4, so that it can earn only its cost of capital on any investments made in year 4 or subsequently. What is Growth-Tech stock worth now under this assumption? (Make additional assumptions if necessary.) (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock value $