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The return on equity for Kalavis Corporation is 15 percent.The company distributes 40 percent of its earnings as dividend.Theremaining part is reinvested in company projects.

The return on equity for Kalavis Corporation is 15 percent.The company distributes 40 percent of its earnings as dividend.Theremaining part is reinvested in company projects. The company announced to distribute $1.6 dividend per share, immediately. The required rate of return for similar corporations' common stock is 12 percent.What part of this value coming from the present value of the growth opportunities (PVGO)?

Question 15 options:

$21.8

$23.5

$19.5

$17.4

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