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Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will

Even Better Products has come out with a new and improved product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its projected earnings are $3 per share. Investors expect a 13% rate of return on the stock.

a. At what price would you expect the firm to sell?

b. At what P/E ratio would you expect the firm to sell?

c. What is the present value of growth opportunities?

d. What would be the P/E ratio if the firm planned to reinvest only 15% of its earnings?

e. What would be the present value of growth opportunities if the firm planned to reinvest only 15% of its earnings?

please answer and I will thumbs up!

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