Sisters Corp expects to earn $7 per share next year. The firm’s ROE is 14% and its plowback ratio is 60%. 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 $