Question: correct answer? A firm is expected to generate an EPS of $1.80 over the next year, and this is expected to grow at a constant

correct answer? A firm is expected to generate an EPS of

correct answer?

A firm is expected to generate an EPS of $1.80 over the next year, and this is expected to grow at a constant rate of 2.5% in perpetuity. It maintains a constant payout ratio of 55%. If the cost of equity is 4.3%, what is the present value of growth opportunities? Select one: a. $8.46 b. $3.14 c. $13.14 d. $6.93

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