Question $13$

$($Questions $11-14)$ Nike has an earnings retention ratio of $53\%.$ The stock has a market capitalization rate of $11\mathrm{.}8\%$ and an ROE of $20\%.$ What is the

stock's PEG $(\frac{\frac{P}{E}}{100g})$ ratio?

$3\mathrm{.}21$

$3\mathrm{.}45$

$3\mathrm{.}57$

$3\mathrm{.}69$

Question $14$

$($Questions $11-14)$ Next year's earnings are estimated to be $$3\mathrm{.}2.$ Nike plans to reinvest $53\%$ of its earnings at $20\%.$ If the cost of equity is $11\mathrm{.}8\%,$ what is

the present value of growth opportunities?

$$54$

$$76$

$$32$

$$98$