Grott and perrin, inc., has expected earnings of $3 per share for next year. the firm's roe is 20%, and its earnings retention ratio is 70%. if the firm's market capitalization rate is 15%, what is the present value of its growth opportunities?

The present value of its growth opportunities is $70

Explanation:

Data provided in the question;

Expected earning per share, E = $3

The firm's ROE = 20% = 0.2

Earnings retention ratio = 70% = 0.70

Firm's market capitalization rate = 15% = 0.15

Now,

The present value of its growth opportunities is calculated using the formula

=

on substituting the respective values, we get

=

or

= $90 - $20

or

= $70

Hence, The present value of its growth opportunities is $70

answer(d) encourage cooperation by improving the chances of mutually agreeable transactions;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.