Question: EPS(1) = $5 Dividends per share (1) =0 Book Value per share (0) =$30 A does not plan to pay any dividends in periods 1,

EPS(1) = $5 Dividends per share (1) =0 Book Value per share (0) =$30

A does not plan to pay any dividends in periods 1, 2 or 3. dividends equal to its earnings. Assume that the ROE will stay constant over time. Also, assume that the opportunity cost of capital is 15%. How much is A Company worth per share?

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