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

Sisters Corporation expects to earn $

46

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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