You are an investment adviser. One of your clients approaches you for your advice on investing in equity shares of Theta Company. You have collected the following data: Dividend per share at the end of the previous year was $2.40 Dividend payout ratio 0.40 Return on equity 0.20 Cost of equity capital 0.15 The company plans to decrease the retention ratio to 50% from year 3. i) Estimate the price of an equity share of this company using the two-period dividend discount model and advise your client whether they should buy a share of the company. ii) Calculate the present value of growth opportunities.