What is the present value of growth opportunities

Reference no: EM13289920

Next year's earnings are estimated to be $6.00. The company plans to reinvest 33% of its earnings at 12%. If the cost of equity is 8%, what is the present value of growth opportunities?

Answer

$6.00

$25.00

$44.44

$75.00

Reference no: EM13289920

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