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Stevie Ray generate $3 in earnings per share forever. The fair return is 14%. They can retain 30% of earnings and invest in a project

Stevie Ray generate $3 in earnings per share forever. The fair return is 14%. They can retain 30% of earnings and invest in a project that will earn 12%. Find the value of assets in place. Find the value of the growth opportunity.


Should Stevie Ray buy it?

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