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According to many analysts, SolarTerra Inc.'s current market price is $25 per share and its book value is $20 per share. Analysts forecast that the
According to many analysts, SolarTerra Inc.'s current market price is $25 per share and its book value is $20 per share. Analysts forecast that the firm's book value will grow by 4% per year indefinitely, and the cost of equity is 7%. Given these facts, what is the market's expectation of the firm's long-term average ROE
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