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Next year's earnings are estimated to be $5. The company plans to reinvest 20% of its earnings at 15%. If the cost of equity is

Next year's earnings are estimated to be $5. The company plans to reinvest 20% of its earnings at 15%. If the cost of equity is 11%, what is the present value of growth opportunities?

A. 3.55

B. 5.55

C. 4.55

D. 11.11

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