We are at the end of 2019. Company A Inc. has just reported earnings per share of $8 from its current operations, for a cost of capital of 10%. During 2020 the company expects additional earnings per share from future growth opportunities, amounting to $1 per share. These are expected to grow by 4% for the foreseeable future.

1. What is the value of the current operations earnings per share? (4 points)

2. What is the value of the additional earnings per share, due future growth opportunities (i.e., NPVGO)? (4 points)

3. What is the total value of the company? (2 points)