Question: Suppose that instead of plowing money back into lucrative ventures, Aqua management is investing at an expected return on equity of 5 % , which

Suppose that instead of plowing money back into lucrative ventures, Aqua management is investing at an expected return on equity of 5%, which is below the return of 7% that investors could expect to get from comparable securities. Dividend is $0.86 and assume a 38% plowback ratio.
Find the value of the investment opportunity using constant growth model.

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