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Burmore will pay a year-end dividend of $4.80 per share, which is expected to grow at a 4 percent rate indefinitely. The discount rate is
- Burmore will pay a year-end dividend of $4.80 per share, which is expected to grow at a 4 percent rate indefinitely. The discount rate is 12 percent. If earnings are $6.20 a share, what is the implied value of the firm's growth opportunities?
- A.$8.33
- B.$21.21
- C.$51.67
- D.$10
- E.$12.50
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
