Use the following information to answer Questions 3 to 5: An analyst gathered the following information regarding Pluto Inc: Expected EPS for 2011 = $4.25 Retention rate = 0.4 Required return = 11% Current stock price = $54.85 Dividends are paid out at the end of the year and are expected to grow at a rate of 5.5% forever.

Question: The intrinsic value of the stock at the end of 2010 is closest to:

Select one: a. $46.36 b. $77.27 c. $30.91

Question text The present value of growth opportunities is closest to: Select one: a. $31.67 b. $16.21 c. $7.72

Question text The fraction of the company's leading P/E ratio that comes from present value of growth opportunities is closest to: Select one: a. 3.81% b. 29.55% c. 34.97%