At what price will the stock sell what is the present value


A firm’s management reinvest 60% of its earnings in projects that provide an ROE 10%, despite the fact that firm’s capitalization rate is 15%. The firm’s year-end dividend will be $2 per share, paid out of earnings of $5 per share. At what price will the stock sell? What is the present value of growth opportunities?

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Financial Management: At what price will the stock sell what is the present value
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