Question: please show all work and formulas 7. Benson Co., an all-equity firm, just reported EPS of $5.00 per share for 2020 year-end. Due to the

please show all work and formulas

7. Benson Co., an all-equity firm, just reported EPS of $5.00 per share for 2020 year-end. Due to the economic downturn, it decided to cut its dividend payout ratio to 20% in 2020 and also for next two years. Benson's CFO forecasts that the economy will make a turnaround by the end of 2023 so that the firm can fund its growth internally with 80% payout ratio. The firm is initiating a new investment that earns 15% return, which will account for all future earnings growth. Assume Benson Co.'s equity cost of capital is 10%. a. Estimate the firm's EPS in 2021, 2022, and 2023. b. What is the value of Benson's stock in 2022? c. What is the value of Benson's stock in 2020

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