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XYZ corp expects to earn $ 3.8 per share next year and plow back 34.21 % of its earnings ( i.e. it expects to pay
XYZ corp expects to earn $ 3.8 per share next year and plow back 34.21 % of its earnings ( i.e. it expects to pay out a dividend of $ 2.5 per share , representing 65.79 % of its earnings ) The dividends are expected to grow at a constant sustainable growth rate and the stocks are currently priced at $ 30 per share . How much of the stock's $ 30 price is reflected in Present Value of Growth Opportunities ( PVGO ) if the investors ' required rate of return is 20 %? 4 decimal answer only
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