Use the following information for the next 3 questions. Total Landscaping Corp (Ticker TLC) just announced Dividends and Earnings per share of $12 and $16 respectively. It has a Net Profit Margin of 5%, Total Asset Turnover of 2.0 and a Total Debt Ratio of 20%, and a beta of 1.50. Treasuries currently yield 3%, and the market risk premium is 4%.

1. What is TLCs justified trailing P/E?

2. What is the value of TLCs assets in place (i.e. the no growth value of the firm)?

3. What is TLCs Present Value of Growth Opportunities? Assume the stock is fairly priced (i.e. that its price equals its intrinsic value).