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Suppose a firm with a ROE of 15%. The earnings per share (EPS) next year are projected at $5, and the firm's earnings retention ratio

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Suppose a firm with a ROE of 15%. The earnings per share (EPS) next year are projected at $5, and the firm's earnings retention ratio is 0.60. The required return for the firm is 12%. Compute the following for the firm: a) Intrinsic value b) Present value of growth opportunity c) Tangible P/E ratio d) Franchise value

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