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Sisters Corporation expects to earn $ 1 2 per share next year. The firm s ROE is 1 5 % and its plowback ratio is

Sisters Corporation expects to earn $

12

per share next year. The firm

s ROE is

15 %

and its plowback ratio is

60 % .

Assume the firm

s market capitalization rate is

10 % .

What is the present value of its growth opportunities?

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