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Sisters Corporation expects to earn $ 1 6 per share next year. The firm's ROE is 1 0 % and its plowback ratio is 4

Sisters Corporation expects to earn $

16

per share next year. The firm's ROE is

10 %

and its plowback ratio is

40 % .

Assume the firm's

market capitalization rate is

8 % .

What is the present value of its growth opportunities?

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