You are trying to value ACF Inc. Here is the information (at t=0): Operating Income (EBIT) Net income Cost of equity Cost of capital (WACC) Number of shares $100 million $50 million 13% 8% 50 million You would like to use the dividend discount model to value the company. Assume dividends are paid annually. (a) Suppose the return on equity is 10% and is unchanged forever, if the company is going to enjoy a high growth period of 7% for the next 3 years, followed by a perpetual growth period of 1%, what is the share price for the company? (b) If the company does not make any reinvestment and hence has no growth, what is the share price? (c) What is the PVGO of the company? Comment on the sign of the PVGO and suggest a possible reason for the sign