Sisters corp expects to earn 8 per share next year the


Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 16% 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

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Financial Management: Sisters corp expects to earn 8 per share next year the
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