Estimate the present value of the growth opportunity

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Reference no: EM1345189

Assume that XYZ has Earnings Per share of $1.79 with a .68 cent dividend and return on equity of 24%. If the stock price is $49.22 then:
1. Use the dividend discount model to estimate the return for XYZ
2. Estimate the present value of the growth opportunity.

Reference no: EM1345189

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