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Estimate the return for valmont

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Reference no: EM132245257

You have the following information for Valmont Industries: Current EPS is $3.23. The current dividend is $1.50 per share. The return on equity is 7.04%. The current price is $125.66. 

a. Use the dividend discount model (also known as constant growth model) to estimate the return for Valmont. Does this estimate of the return make sense for VMI? Explain. 

b. Assuming your answer to part a. is correct, estimate the present value of the growth opportunities (PVGO).

Reference no: EM132245257

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