even better products has come out with an even better product. as a result, the firm projects Roe of 30% a beta of .9, and it dull may rain a plowback ratio of .30. its earnings this year will be $2 per share. the consensus estimates of the coming years market return is 13%, and T bills currently offer a 3% return.

a what price abd P/E ratio woukd you exoect the firm to sell?

what is the present value if growth opportunities

what would be P/E ratio and the PV of growth opp if the firm planned to reinvest only 20% earnings?