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Great Barrier Reef International (GBRI) is a public company with shares listed on the NYSE. In 2018, the company will pay a year-end dividend of
Great Barrier Reef International (GBRI) is a public company with shares listed on the NYSE. In 2018, the company will pay a year-end dividend of $2.67. Stock analysts expect the dividend to grow at a 3% rate indefinitely. The discount rate is 11%. (a) What is the stock selling for? (b) If GBRIs earnings are $3.05 per share, what is the implied value of the firms growth opportunities? (Hint: PVGO) (10 pts)
is a 34.38 or 33.38?
is b 6.65 or 5.65?
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