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What is the present value of growth opportunities

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Fortress of Solitude Co. expects an earnings per share of $1.47 and reinvests 35% of its earnings. Management projects a rate of return of 11% on new projects and investors expect a 10% rate of return on the stock. Given a sustainable growth rate of 3.85% is $15.54 and that the price with no growth is $14.70, what is the present value of growth opportunities (PVGO)?

Reference no: EM133123807

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