You are considering purchasing shares in U-To, which is a publicly traded removalist company. The company's stock (ticker UTO) has just paid a dividend of $6.8 per share to its investors off of earnings of $17.3 per share. The company will continue to pay out this portion of its profits as dividends each year until t=4, with the remainder of its earnings being retained and invested by the firm in projects that have a return on new investment of 57.0% each year over this same period. Dividends are paid by U-To annually and the company does not, nor is it expected to ever, repurchase shares. Part A: What is the expected dividend per share that UTO will pay one year from now (i.e. at t=1)? per share (Round your final answer to 4 decimal places) Part B: U-To is expected to maintain its retention ratio until t=4 (i.e. four years from today). Immediately after the payment of the t=4 dividend, you expect that the market price of the stock will be 14.71 times the size of that t=4 dividend. For example (only!), if the firm's t=4 dividend were to bypothetically be $2.50, an investor owning one share would get paid a dividend of that size and then still own a stock that would be worth a market price of 14.71 x $2.50 = $36.78 per share. Given the above assumptions, what should be the share price today assuming a discount rate of 16.00% per annum? $ per share today (Round your final answer to 4 decimal places) Part C: Assume that the market price of the stock at t=4 provided above is based on the belief that U-To will retain 73.60% of earnings each year in perpetuity beginning immediately after the t=4 dividend is paid (i.e.. affecting the earnings relevant to t=5). If the market also believe that return on new investment will be constant after t=4 and in perpetuity, what is the market's expected return on new investment for U-To as a percentage? % (Round your final answer to 2 decimal places) Activate Windows