PLEASE ANSWER ASAP WILL RATE!!! BOTH 2 QS ARE CONNECTED

Question 27 1 pts The following information applies to the next two questions (27-28) Ace Ventura, Inc. has expected earnings of $5 per share for next year. The firm's return on equity (ROE) is 15% and its earnings retention ratio is 40% (i.e. the payout ratio will be 60%). If the required rate of return for the firm is 10%. What should be the stock price now? (Hint: find the growth rate and expected dividend per share for next year first) 1. $70.00 2. $72.50 3. $75.00 4.$77.50 5. $80.00 4 2 5 3 Question 28 1 pts Based on the information and answer from Q 27, what is Ace Ventura's present value of growth opportunities (PVGO)? (Hint: find the value of the stock when the growth rate is zero first) 1. $25 2. $30 3. $35 4. $40 5. $45 3 1 4 5 02