What is the value of alberts growth opportunities

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Albert's Company has current earnings of $4.20 per share. The company intends to use part of its earnings for investments that will generate a return of 20%. The cost of capital of Albert's is 15%, and its current stock price is $40. What is the percentage of the earnings Albert's intends to reinvest (i.e., the retention ratio)? What is the value of Albert’s growth opportunities?

Reference no: EM131014741

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