Question: Please explain the answer Question 17 5 points Save Answer XYZ corp expects to earn $4.5 per share next year and plow back 44.44% of

Please explain the answer Please explain the answer Question 17 5 points Save Answer XYZ corp

Question 17 5 points Save Answer XYZ corp expects to earn $4.5 per share next year and plow back 44.44% of its earnings (i.e., it expects to pay out a dividend of $2.5 per share, representing 55.56% 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%

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