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Razor Crest Inc. is expected to pay $4 in dividends one year from now. The required rate of return on equity for this firm is

Razor Crest Inc. is expected to pay $4 in dividends one year from now. The required rate of return on equity for this firm is 12%. The company earns a return on equity of 14% and has a retention rate of 40%. What is the present value of growth opportunities for this firm?

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