ESSEN.OF.INVESTMENTS+CONNECT
ESSEN.OF.INVESTMENTS+CONNECT
10th Edition
ISBN: 9781260361605
Author: Bodie
Publisher: MCG
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Chapter 13, Problem 11PS

Sisters Corp. expects to earn $ 6 per share next year. The firm’s ROE is 15 % and its plowback ratio is 6 0 % . If the firm’s market capitalization rate is 1 0 % , what is the present value of its growth Opportunities“? LO 13 3

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