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Sisters Corp expects to earn $6 per share next year. The firms ROE is 15% and its plowback ratio is 60%. If the firms market
Sisters Corp expects to earn $6 per share next year. The firms ROE is 15% and its plowback ratio is 60%. If the firms market capitalization rate is 10%.
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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