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Company A's CAPM-implied expected return is equal to 10%. The company is expected to pay a $20 dividend per share in one year out of

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Company A's CAPM-implied expected return is equal to 10%. The company is expected to pay a $20 dividend per share in one year out of its $40 earnings per share. Suppose the company has a constant ROE (return on equity) of 15%, and keeps paying out the same fraction of its earnings as dividends. What is the present value of Company A's growth opportunities? $400.00 $200.00 $133.33 $266.67

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