Question: Question 2 10 Points Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result and its
Question 2 10 Points Please provide your answer through calculations to the problem, by presenting the formulas you use, the calculations, the result and its interpretation. Your ownership in a firm gives you the right to get a $10 dividend, which represents as 100% this year earnings per share. However, the firm decides that next year it will plow back 45% of earnings per share. If next year the share ROE is 25% and the firm's discount rate is 15%, calculate the present value of growth opportunities
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