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Sister's Corporation expects to earn $7 per share next year. The firms ROE is 12% and its plowback ratio is 80%. The firm's market capitalization
Sister's Corporation expects to earn $7 per share next year. The firms ROE is 12% and its plowback ratio is 80%. The firm's market capitalization rate is 10%.
Calculate the price with the constant dividend growth model. (Do not round intermediate calculations.)
Calculate the price with no growth.
What is the present value of its growth opportunities? (Do not round intermediate calculations.)
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