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BGOOD is a firm that has EPS of $8 at the end of the first year, the dividend-payout ratio is currently 100% as good opportunities

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BGOOD is a firm that has EPS of $8 at the end of the first year, the dividend-payout ratio is currently 100% as good opportunities of investment were very scare, however, the company is considering retain 60% of its carning every year starting from next year and investing in a new project that is cxpected to generate a ROE-20% and will continue forever. The required rate of return of 16%. 1. Calculate the value of the company with no growth opportunities. 2. Calculate the value of the company if they go ahead with the new project 3. Calculate the NPV of the GO. Blank #1 Blank # 2 Blank # 3

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