The projects will earn a return on equity of 13 what is the


Consider a company that has earnings of $3 per share and pays out all of its earnings as dividends. The required return on this company's stock is 12%. Management has identified some positive NPV projects and decides to retain half of their earnings to invest in these projects. The projects will earn a return on equity of 13%. What is the present value of the growth opportunities (PVGO) for this company?

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Finance Basics: The projects will earn a return on equity of 13 what is the
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