You have been informed that the next year's Earning Per Share (EPS) is estimated to be 53. The company plans to retain from its earnings 40% The Return of Equity (ROE) is 20%. The beta of the company is 2. The risk-free rate is 5% and the market risk premium is 5% Required: (You should enter at least the two last steps of each of your calculations on the system) 1. Explain briefly, with your own words, four (4) main differences between the common stocks and Preferred stocks (2 Marks) 2. Explain the benefits of the Dividend Model for the investors (1 Mark) 3. Compute the price with no growth (1 Mark) 4. Compute the price with growth (1 Mark) 5. Explain and compute the present value of the growth opportunities (1 Mark) Note: No justification, no grade. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)