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The Forzani Group Ltd. expects to have earnings per share of $6 in the coming year. Rather than reivest these earnings and grow, the firm

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The Forzani Group Ltd. expects to have earnings per share of $6 in the coming year. Rather than reivest these earnings and grow, the firm plans to pay out all of its earnings as dividend. Consider the above information. With the expectation of no growth (zero growth), what is the Forzani Group's current stock price if the required return on the stock is 10 percent and the ROE is 1 percent? Given the above information, what is the present value of growth op- portunities (PVGO) per share for the Forzani Group? A. $2.10. B. $4.28. C.$5.98. D. $6.29. E. None of the above. The Forzani Group Ltd. expects to have earnings per share of $6 in the coming year. Rather than reivest these earnings and grow, the firm plans to pay out all of its earnings as dividend. Consider the above information. With the expectation of no growth (zero growth), what is the Forzani Group's current stock price if the required return on the stock is 10 percent and the ROE is 1 percent? Given the above information, what is the present value of growth op- portunities (PVGO) per share for the Forzani Group? A. $2.10. B. $4.28. C.$5.98. D. $6.29. E. None of the above

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