A company has just paid a dividend of $5 per share.The company's dividends are expected to grow

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A company has just paid a dividend of $5 per share. The company's dividends are expected to grow at a constant rate of 8% per year forever.

Earnings per share one year from now are expected to be $9.00.

The required rate of return on this share is 12% per year.

Required :

Calculate the present value of growth opportunities for the share.

Related Book For answer-question

Introduction to Mathematical Statistics and Its Applications

ISBN: 978-0321693945

5th edition

Authors: Richard J. Larsen, Morris L. Marx

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Posted Date: May 13, 2022 03:59 AM

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A company has just paid a dividend of $5 per share.The company's dividends are expected to grow

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The present value of growth opportunities PVGO is a component of a companys market price per share t... View the full answer

Introduction to Mathematical Statistics and Its Applications

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