Cneck my work

Even Better Products has come out with an even better product. As a result, the firm projects an ROE of $25\%,$ and it will maintain a plowback ratio of $0\mathrm{.}40.$ Its earnings this year will be $$2$ per share. Investors expect a $15\%$ rate of return on the stock.

$10$

points

Required:

a$.$ At what price and P$/$E ratio would you expect the firm to sell? $($Do not round intermediate calculations. Round your

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answers to $2$ decimal places.$)$

References

$\backslash$table$[[$Price$,$$$,24\mathrm{.}00],[\frac{P}{E}$ ratio,,$12\mathrm{.}00]]$

b$.$ What is the present value of growth opportunities? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

$\backslash$table$[[$PVGO$,$$$,10\mathrm{.}67$