What is the value of the bradleys stock

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The newspaper reported last week that Bradley Enterprises earned $2 per share this year. Bradley retains 60 percent of its earnings to reinvest in the company, where the return on the reinvestment is 14 percent. The cost of capital of Bradley is 12 percent.

What is the value of the Bradley's stock?

From where does this stock get most of its value: the earnings generated by the existing assets or the expected growth opportunities? Show your calculations

Reference no: EM131026202

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