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Earnings this year will be $ 6 per share, and investors expect a rate of return of 8 % on stocks facing the same risks
Earnings this year will be $ per share, and investors expect a rate of return of on stocks facing the same risks as Web Cites.
a What is the sustainable growth rate?
b What is the stock price?
c What is the present value of growth opportunities PVGO
d What is the PE ratio?
e What would the price and PE ratio be if the firm paid out all earnings as dividends?
Do not round intermediate calculations. Round your answers to decimal places.
Answer is complete but not entirely correct.
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