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HIG Corporation expects to earn $ 4 per share next year. The firm s ROE is 1 0 % and its plowback ratio is 5

HIG Corporation expects to earn $

4

per share next year. The firm

s ROE is

10 %

and its plowback ratio is

50 % .

The firm

s Beta is

0.75,

the risk

-

free rate is

3 %,

and the expected return on the market is

10 % .

What is the firm

s PVGO?

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