Question: Pls help Homework #6 Saved Help Save & Exit Subm 4 Metatrend's stock will generate earnings of $2 per share this year. The discount rate

Pls help Pls help Homework #6 Saved Help Save & Exit Subm 4 Metatrend's

Homework #6 Saved Help Save & Exit Subm 4 Metatrend's stock will generate earnings of $2 per share this year. The discount rate for the stock is 10%, and the rate of return on reinvested earnings also is 10%. a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: () 0%; (ii) 20%; (iii) 40%. (Do not round intermediate calculations. Enter the growth rates as a whole percent.) 10 points Reinvestment of Earnings 0% 20% 40% Print Growth rate of dividends 21% 41% References 0 % 20 Stock price $ b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%. What is the present value of growth opportunities (PVGO) for each reinvestment rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Reinvestment of Earnings 20% 40% 0% PVGO

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