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A company is expected to earn $3 per share next year, pay out 20% as dividend. Its earnings is expected to grow at 6% for

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A company is expected to earn $3 per share next year, pay out 20% as dividend. Its earnings is expected to grow at 6% for 5 years, and then 4% in the long term. It has a cost of equity of 12%. What is the present value of growth opportunity for this company? a. $3.10 b. -$16.90 c. -$3.10 d. $7.10

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