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Problem 1 8 - 1 1 ( Algo ) Sisters Corporation expects to earn $ 4 2 per share next year. The firm's ROE is

Problem

18 - 11 (

Algo

)

Sisters Corporation expects to earn $

42

per share next year. The firm's ROE is

15 %

and its plowback ratio is

60 % .

Assume the firm's market capitalization rate is

10 % .

What is the present value of its growth opportunities?

Present value of growth opportunities

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