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Sisters Corp expects to earn $7 per share next year. The firm's ROE is 15% and its plowback ratio is 50%. If the firm's market
Sisters Corp expects to earn $7 per share next year. The firm's ROE is 15% and its plowback ratio is 50%. If the firm's 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 $ 70 c. What is the present value of its growth opportunities?(Do not round intermediate calculations.)
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