Growth Corp is a high growth company. It has an expected dividend at the end of this year of R1. Those dividends are expected to grow at a constant rate of 10% forever. If the discount rate is 20% and the payout ratio is 80%, calculate the present value of growth opportunities.
a. R 2.84
b. R 5.63
c. R 4.37
d. R 3.75
e. R10.00
