Question: The Question is: ABC Research projects a return on equity of 30%. Management plans to plow back 30% of all earnings into the firm. Earnings

The Question is: ABC Research projects a return on equity of 30%. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $5 per share, and investors expect a 15% rate of return on the stock (r=15%). What is the present value of growth opportunities? What formula would I use?

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