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Assume that a company is expected to generate $5 earnings per share in the next year. The required rate of return for this firm is

Assume that a company is expected to generate $5 earnings per share in the next year. The required rate of return for this firm is 10%. Assume further that the present value of growth opportunity for this firm is equal to $20. What is the PE ratio for this firm?

Group of answer choices

A) 14

B) 24

C) 34

D) 25

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