Question: Problem 10-1 Gruber Industries has an expected EPS or $2.50 for next year and is currently selling at $66 per share. If the required return

Problem 10-1 Gruber Industries has an expected EPS or $2.50 for next year and is currently selling at $66 per share. If the required return on Grubers stock is 9 percent, what is the present value of growth opportunities (PVGO) for the stock? What percent of Grubers stock price is attributed to growth?

Problem 10-15 Wansley Corporation pays a dividend of $1.60, which is expected to grow at a constant rate of 8% a year. Investors require a 16% return on Wansley. What is Wansleys estimated price?

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