Consider a firm that pays no dividends next yearrsquos


Consider a firm that pays no dividends. Next year’s earnings are projected to be $1,500,000. The present value of growth opportunities is estimated to be $13,500,000. Suppose that there are 250,000 shares outstanding. If investors require a return of 12 percent, what is the fair value of the company’s stock (Find the price per share)? Please show your work.

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Financial Management: Consider a firm that pays no dividends next yearrsquos
Reference No:- TGS01260788

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