Evaluate Verizon (VZ) common stock. The current price of VZ is $44.20 per share. Last year, earnings were $4.32 per share and dividends paid were...

1. Evaluate Verizon (VZ) common stock. The current price of VZ is $44.20 per share. Last year, earnings were $4.32 per share and dividends paid were $2.60 per share. The beta of VZ is 0.88; the long term expected constant growth rate for VZ is 3.0%. The trailing (ttm) P/E ratio is equal to 10.23. The risk-free rate is 2.8% (10 year Treasury) and expected market risk premium is 5.70% The tax rate for VZ is 32%.

a) What is the present value of growth opportunities for Verizon?