Its historical return on equity is 25 the expected shock


Question

Wildcat Co. Has some valuable growth opportunities. The firm is expected to have earnings per share of $9 next year, and the retention ratio is 40%.

Its historical return on equity is 25%. The expected Shock return is 20%. What is the value of the growth opportunities for each share?

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Financial Management: Its historical return on equity is 25 the expected shock
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