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Calculate the net present value of growth opportunities

The current market price of RJR Corp. equity is $50 per share. Analysts estimate that RJR will report earnings-per-share of $3.50 in one year. The required rate of return on RJR shares is 7%. Calculate the Net Present Value of Growth Opportunities (NPVGO) as a percentage of the current market price.

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Business Economics: Calculate the net present value of growth opportunities

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