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Bad Blood has an ROE of 11%, a beta of 1.15, and traditionally its plowback ratio is 2/3. This years earnings are $4.5 per share

Bad Blood has an ROE of 11%, a beta of 1.15, and traditionally its plowback ratio is 2/3. This years earnings are $4.5 per share and the current year dividend has been paid. Investors expect next years market to return 11% and the risk free rate is 5%.

a. What is the price that Bad Blood should sell at?

b. What is Bad Bloods ROE?

c. Calculate the present value of growth opportunities.

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