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Question 1 Firm ABC projects an ROE of 10%, and it will maintain a plowback ratio of 50%. Its earnings at the end of this

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Question 1 Firm ABC projects an ROE of 10%, and it will maintain a plowback ratio of 50%. Its earnings at the end of this year (EPS) will be $2 per share. Investors expect an 8% rate of return on the stock. a. At what price would you expect the firm to sell? b. What is the present value of growth opportunities

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