Question
After thoroughly analyzing a company you come up with the following assumptions: Next year's earnings are estimated to be $5. Based on historical behavior you
After thoroughly analyzing a company you come up with the following assumptions: Next year's earnings are estimated to be $5. Based on historical behavior you think the company plans to reinvest 20% of its earnings at a 15% rate. If the cost of equity is 9%, what is the present value of growth opportunities?
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
