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Our company forecasts to pay a $10 dividend next year, which represents 100% of its earnings. This will provide investors with a 9% expected return.
Our company forecasts to pay a $10 dividend next year, which represents 100% of its earnings. This will provide investors with a 9% expected return. Instead, we decide to plowback 33% of the earnings at the firm current return on equity of 12%. What is the present value of growth opportunities (PVGO)?
A. 21.8
B. 10.5
C. 35.5
D. 55.5
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Stock Market Investing For Beginners
Authors: Andrew P.C.
1st Edition
1549522132, 978-1549522130
