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7.) Bad Blood has an ROE of 10%, a beta of 1.25, and traditionally its plowback ratio is 2/3. This year's earnings are $4 per

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7.) Bad Blood has an ROE of 10%, a beta of 1.25, and traditionally its plowback ratio is 2/3. This year's earnings are $4 per share and the current year dividend has been paid. Investors expect next year's market to return 12% and the risk free rate is 6%. 6 pts a. What is the price that Bad Blood should sell at? b. What is Bad Blood's ROE? c. Calculate the present value of growth opportunities

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