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Sisters Corporation expects to earn $ 8 per share next year. The firm s ROE is 1 5 % and its plowback ratio is 5
Sisters Corporation expects to earn $ per share next year. The firms ROE is and its plowback ratio is The firms market capitalization rate is
Required:
a Calculate the price with the constant dividend growth model. Do not round intermediate calculations.
b Calculate the price with no growth.
c What is the present value of its growth opportunities? Do not round intermediate calculations.
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