A firm has projected annual earnings per share of 390 and a


Value of Growth Opportunities. A firm has projected annual earnings per share of $3.90 and a dividend payout ratio of 55%. The firm's required return is 11% and dividends and earnings are expected to grow at 2% per year indefinitely. For this firm the present value of its growth opportunities is ________.

a) $62.58

b) $36.05

c) $59.29

d) $23.24

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Financial Management: A firm has projected annual earnings per share of 390 and a
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