brobles6299 brobles6299
  • 25-08-2022
  • Business
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Next year's earnings are estimated to be $4. The company plans to reinvest 20% of its earnings at 10%. If the cost of equity is 7%, what is the present value of growth opportunities?
a. $7.07
b. $7.86
c. $6.86
d. $5.86

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