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A company will earn $3 next year and should be able to pay out 30% as dividend. The company is expected to grow at 6%
A company will earn $3 next year and should be able to pay out 30% as dividend. The company is expected to grow at 6% and has a cost of equity of 15%. What is the present value of growth opportunity for this company?
Select one:
a. $5
b. $10
c. -$5
d. -$10
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