Question
Growers Inc. has a market capitalization (k) of 14%, and expects earnings next period of $3/share (i.e., in t=1). Growers can earn 15% on new
Growers Inc. has a market capitalization (k) of 14%, and expects earnings next period of $3/share (i.e., in t=1). Growers can earn 15% on new investment (ROE), and plans to plowback 75% of earnings. What is Growers' PVGO?
a. $3.94
b. $5.84
c. $10.91
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The Dark Side Of Valuation
Authors: Aswath Damodaran
1st Edition
013040652X, 9780130406521
