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Question#3 A company has expected earnings of $3 per share for next year. The firm's ROE is 20%, and its earnings retention ratio is 70%.

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Question#3 A company has expected earnings of $3 per share for next year. The firm's ROE is 20%, and its earnings retention ratio is 70%. If the firm's market capitalization rate is 15%. 1) what is the present value of its growth opportunities? 2) What is the stock's P/E ratio

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