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The market consensus is that a corporation has an ROE of 10% and a beta of 2.20. It plans to maintain indefinitely its traditional plowback

The market consensus is that a corporation has an ROE of 10% and a beta of 2.20. It plans to maintain indefinitely its traditional plowback ratio of 3/5. This year's earnings were $4.4 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return.

Calculate the present value of growth opportunities.

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