What is present value of growth opportunities

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The risk-free rate is 8%, the expected return on the market portfolio is 15%, and the stock of Hudson Corp. has a beta of 1.2. Hudson pays 40% of its earnings as dividends. The earnings next year are expected to be $12 per share. You expect Hudson to earn an ROE of 20%.

A. What is the value of Hudson Corp. stock?

B. What is the present value of growth opportunities?

C. What is the P/E ratio of Hudson Corp.?

Reference no: EM132065973

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