Sram stays equity only company and decides to embark on the following growth plan: it will...

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Sram stays equity only company and decides to embark on the following growth plan: it will reinvest all of its earnings this year and next year, 80% of its years 2 earnings, and then starting from year 3 it will reinvest 50% of its earnings forever. The after-tax return on equity (ROE) is 50%in years 0 and 1, 40% in year 2, and 30% for all remaining years. Each investment pays forever. NOTE: Use the discount rate of 20% use $3 for EPS (i) What are Sram's EPS, investment, and dividend in year 1? (ii) What are Sram's EPS, investment, and dividend in year 2? (iii) What are Sram's EPS, investment, and dividend in year 3? (iv) What are Sram's EPS and dividend in year 4? (v) What is Sram's price, P, with this reinvestment policy? (vi) What is PVGO from such investment policy? Sram stays equity only company and decides to embark on the following growth plan: it will reinvest all of its earnings this year and next year, 80% of its years 2 earnings, and then starting from year 3 it will reinvest 50% of its earnings forever. The after-tax return on equity (ROE) is 50%in years 0 and 1, 40% in year 2, and 30% for all remaining years. Each investment pays forever. NOTE: Use the discount rate of 20% use $3 for EPS (i) What are Sram's EPS, investment, and dividend in year 1? (ii) What are Sram's EPS, investment, and dividend in year 2? (iii) What are Sram's EPS, investment, and dividend in year 3? (iv) What are Sram's EPS and dividend in year 4? (v) What is Sram's price, P, with this reinvestment policy? (vi) What is PVGO from such investment policy?