Question: please include all work please include all work 3. Hewlett-Packard's (HP) expected earnings per share are $0.80. The required rate of return for HP is

please include all work

3. Hewlett-Packard's (HP) expected earnings per share are $0.80. The required rate of return for HP is 15%. HP's ROE is 18% and plowback ratio is 25%. A. Using the constant-growth dividend discount method, calculate the firm's intrinsic value. (10 points) B. Calculate the present value of growth opportunities for HP. (10 points) C. Suppose you found a positive PVGO for HP. In this case, should the firm continue with its current dividend policy or should it instead pay out 100% of earnings as dividends? (5 points)

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