Dividend discount model. Consider a firm with a current dividend of $1 per share. The company's dividends are expected to grow at 7% per year forever (which means the firm will pay a $1.07 dividend in one year), and the required rate of return for the stock is 11%. What is the value of the firm? What would be the value of the firm if the required rate of return was 12%? What if dividends were expected to grow at 8% per year (and the required rate of return was still 11%)? 2. Present value of growth opportunities (PVGO). Ralph's Lawn Care Company has expected earnings per share of $5 and is expected to pay a dividend of $3.50 in one year. Ralph's Lawn Care Company's return on equity is 10%, and its risk-adjusted discount rate is 10%. What is the firm's PVGO? 3. Two-stage dividend discount model. C-Corp just paid a dividend of $2 per share. Dividends are expected to grow at 8% per year for the next 2 years, and then grow at 6% per year forever. The discount rate for C-Corp is 10%. What is the value of a share of C-Corp? 4. P/E ratio. Given the information in problem 2, what is the P/E ratio for Ralph's Lawn Care Company? 5. PEG ratio. Given the information in problem 2, what is the PEG ratio for Ralph's Lawn Care Company