Web Sites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as WebSites. What is the sustainable growth rate? What is the stock price? What is the present value of growth opportunities (PVGO)? What does the PVGO imply? (In other words, dose the firm have good growth opportunities?) What is the P/E ratio? What would the price and P/E ratio he if the firm paid out all earnings as dividends? Remember to use dividend not earnings in the formula! PVGO is the di/Tcrence between the stock price with constant growth rate and the stock price with zero growth rales. if the firm paid out all earnings, indicating the firm has 100% payout ratio, in other words. 0% plow back ratio