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Sisters Corp expects to earn $8 per share next year. The firms ROE is 15% and its plowback ratio is 60%. If the firms market
Sisters Corp expects to earn $8 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.
b.) Calculate the price with no growth.
c.) What is the present value of its growth opportunities?
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