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Sisters Corp expects to earn $9 per share next year. The firms ROE is 14% and its plowback ratio is 60%. If the firms market
| Sisters Corp expects to earn $9 per share next year. The firms ROE is 14% 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? |
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