Calculate the present value of growth opportunities

Reference no: EM133332202

Question: The market consensus is that Total Industries has an ROE = 10%, a beta of 1.3, and plans to maintain indefinitely its traditional plowback ratio of 75%. This year's earnings were $4 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 5% return.

Calculate the P/E ratio and Calculate the present value of growth opportunities?

Reference no: EM133332202

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