Sisters Corp expects to earn $7 per share next year. The firm’s ROE is 12% and its plowback ratio is 80%. If the firm’s market capitalization rate is 10%.
a. Calculate the price with the constant dividend growth model. (Do not round intermediate calculations.) Price $
b. Calculate the price with no growth. Price $
c. What is the present value of its growth opportunities? (Do not round intermediate calculations.) PVGO $