17. A company retains 60 per cent of its earnings, which are currently 5 per share. Its...
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17. A company retains 60 per cent of its earnings, which are currently 5 per share. Its investment opportunities promise a return of 15 per cent. What price should be paid for the share if the required rate of return is 13 per cent? What is the value of growth opportunities? What is the expected rate of return from the share if its current market price is *60?
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