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Stark Industries expects an earnings per share of $1.64 and reinvests 45% of its earnings. Management projects a rate of return of 10% on new
Stark Industries expects an earnings per share of $1.64 and reinvests 45% of its earnings. Management projects a rate of return of 10% on new projects and investors expect a 10% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES. 4.50 Correct response: 4.5+0.01% Click "Verify" to proceed to the next part of the question. Given a sustainable growth rate of 4.5%, what is the price of the stock with growth? Enter your response below rounded to 2 DECIMAL PLACES. 16.40 Correct response: 16.40 Click "Verify" to proceed to the next part of the question. What would be the price of the stock with no growth? Enter your response below rounded to 2 DECIMAL PLACES. 16.40 Correct response: 16.4 Click "Veriy" to proceed to the next part of the question. Given that the price of the stock with growth is $16.40 and that the price with no growth is $16.40, what is the present value of growth opportunities (PVGO)? Enter your response below rounded to 2 DECIMAL PLACES. Number Click "Verify" to proceed. Section Attempt 1 of 1 Verify
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