Calculate the net present value of growth opportunities

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The current market price of Canadian Fire Sale Corp. equity is $30 per share. Analysts estimate that Canadian Fire Sale will report earnings-per-share (EPS1) of $2.50 in one year. The required return on Canadian Fire Sale shares is 10 percent. Calculate the Net Present Value of Growth Opportunities (NPVGO) as a percentage of the market price.

Reference no: EM131308067

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