Value of Growth Opportunities. A firm has projected annual earnings per share of $3.90 and a dividend payout ratio of 55%. The firm's required return is 11% and dividends and earnings are expected to grow at 2% per year indefinitely. For this firm the present value of its growth opportunities is ________.
a) $62.58
b) $36.05
c) $59.29
d) $23.24