Question: Next year Excon Corporation is expected to have earnings per share of $4 and to continue to plow back 60 percent of its earnings into investment projects with an average rate of return on equity of 20 percent. Its capitalization rate is estimated to be 16 percent. Assuming an infinite investment horizon, please find estimates for the current

A. stock price.

B. present value of growth opportunities.

C. price/earnings ratio.