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Stock A is expected to have net income of $3 per share by the end of the coming year

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Stock A is expected to have net income of $3 per share by the end of the coming year. Dividends are expected to grow at a constant rate g per year forever. You know that the company plans to pay out 70% of its earning as didvidend and expects a constant return on equity of 20%. This stock is as risky as Stock B that pays a constant dividend of $6 and is selling for $40 in the market. a. (5pts) What is the fair price for Stock A today? b. (3pts) What is the present value of growth opportinities? Use 3 decimal points in your calculations.