Question
A firm has expected earnings of $4.5 per share for next year. The firms ROE is 20%, and its earnings retention ratio is 70%. If
A firm has expected earnings of $4.5 per share for next year. The firms ROE is 20%, and its earnings retention ratio is 70%. If the firms market capitalization rate
is 15%, what is the present value of its growth opportunities?
| A. | $105 | |
| B. | $135 | |
| C. | $90 | |
| D. | $30 |
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Grow The Pie How Great Companies Deliver Both Purpose And Profit
Authors: Alex Edmans
1st Edition
1108494854,1108849482
