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ARN has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a
ARN has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of .20. Its earnings this year will be $3 per share. Investors expect a 11% rate of return on the stock. What is the present value of growth opportunities for ARN? Round your answer to two decimal places.
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