Question: 34 Need 100 percent perfect answer asap if i will rate positive no explanation required just write answer and round to 4 decimal places Question

34 Need 100 percent perfect answer asap if i will rate positive no explanation required just write answer and round to 4 decimal places
Question 34 10 points Save Answer XYZ corp expects to earn $3.8 per share next year and plow back 34.21% of its earnings (1.e., it expects to pay out a dividend of $2.5 per share, representing 65.79% of its earnings). The dividends are expected to grow at a constant sustainable growth rate and the stocks are currently priced at $30 per share. How much of the stock's $30 price is reflected in Present Value of Growth Opportunities (PVGO) if the investors' required rate of return is 20%75
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
