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A firm reinvests 50% of its earnings in projects with ROE of 12%, capitalization rate is 9%, and the expected year-end dividend is $2.5/share, paid

A firm reinvests 50% of its earnings in projects with ROE of 12%, capitalization rate is 9%, and the expected year-end dividend is $2.5/share, paid out of earnings of $5/share. The present value of growth opportunities of the firm is

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