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Apache Co. is expected to pay a dividend of $4.00 per share out of earnings of $20 per share. If the required rate of return

Apache Co. is expected to pay a dividend of $4.00 per share out of earnings of $20 per share. If the required rate of return on the stock is 20% and dividends are growing at a current rate of 12% per year, calculate the present value of the growth opportunity for the stock (PVGO).

A. $100

B. $80

C. $50

D. $30

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