Present value of growth opportunities in the price of stock

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Reference no: EM131323959

As in the previous question, a Stock just paid a dividend of $2.00 per share. The required return on stocks of this risk is 18.5%. The company has a policy of paying out 2/3 of its earnings as dividends.

If the stock is priced today at $19.50,

What is the Present Value of Growth Opportunities in the price of the stock today?

Reference no: EM131323959

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