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Problem 13-11 (Algo) Sisters Corporation expects to earn $9 per share next year. The firm's ROE is 15% and its plowback ratio is 50%.
Problem 13-11 (Algo) Sisters Corporation expects to earn $9 per share next year. The firm's ROE is 15% and its plowback ratio is 50%. The firm's market capitalization rate is 10%. Required: a. Calculate the price with the constant dividend growth model. (Do not round intermediate calculations.) Price b. Calculate the price with no growth. Price c. What is the present value of its growth opportunities? (Do not round intermediate calculations.) PVGO
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
