Question
The Land of Oz company expects its ROE to be 20%. The company plans to maintain a retention ratio of 60% and to have a
The Land of Oz company expects its ROE to be 20%. The company plans to maintain a retention ratio of 60% and to have a constant dividend growth rate. The companys forecast earnings for the year is $0.34 per share (i.e., E1 = $0.34). Investors expect a 13% rate of return on the Land of Oz stock. What is the present value of growth opportunities (PVGO) for the Land of Oz?
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Glencoe Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0021400202, 9780021400201
