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MedTech Industries expects earnings of $1 per share next year. Its return on equity (ROE) is 15% and its plowback ratio is 60%. The company's
MedTech Industries expects earnings of $1 per share next year. Its return on equity (ROE) is 15% and its plowback ratio is 60%. The company's stock price is $40.
A) What is the cost of capital of this company? (Note: Your answer should be a number in percentage form. Do not enter '%'.)
____%
B) How much of the company's stock value is attributable to the present value of its growth opportunities (PVGO)?
$_____
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