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COVIDA has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a
COVIDA has come out with a new and improved product. As a result, the firm projects an ROE of 25%, and it will maintain a plowback ratio of .20. Its earnings this year (EPS1) will be $3 per share. Investors expect a 10% rate of return on the stock. What is the present value of growth opportunities for COVIDA?
| $8.5 |
| $9.29 |
| $18 |
| $14.29 |
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