Current stock price-present value of growth opportunities


Pharmecology is about to pay a dividend of $1.35 per share. It's a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 2.75% per year. The nominal cost of capital is 9.5% and plow-back ratio is 20%. What is current stock price? What is the present value of growth opportunities? Is it a growth or a value stock?

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Finance Basics: Current stock price-present value of growth opportunities
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