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A what rate of return do nogros investors require b what is

The stock of Nogro Corporation is currently selling for $25 per share. Earnings per share in the coming year are expected to be $5. The company has a policy of paying out 4% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 20% rate of return per year. This situation is expected to continue indefinitely. Please Show Work.

A). What rate of return do Nogro's investors require?

B). What is the present value of the firm's growth options?

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