Question
A company will earn $3 per share next year and should be able to pay out 25% as dividend. The company is expected to
A company will earn $3 per share next year and should be able to pay out 25% as dividend. The company is expected to grow at 7% for 5 years, and then grow at 5% in the long term. It has a cost of equity of 12%. What is the present value of growth opportunity for this company?
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz, Rhonda Pyper
2nd canadian edition
133025071, 978-0133519761, 133519767, 978-0133523676, 133523675, 978-0133025071
