Calculate the price with the constant dividend growth model

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Sisters Corp expects to earn $8 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. If the firm’s market capitalization rate is 10%.

a) Calculate the price with the constant dividend growth model.

b) Calculate the price with no growth.

c) What is the present value of its growth opportunities?

Reference no: EM13889515

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