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Even Better Products has come out with an even better product. As a result, the firm projects an ROE of 20%, and it will maintain
Even Better Products has come out with an even better product. As a result, the firm projects an ROE of 20%, and it will maintain a plowback ratio of 0.30. Its earnings this year will be $2 per share. Investors expect a 12% rate of return on the stock. What is the present value of growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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