Business, 19.12.2019 23:31 davidoj13

Even better products has come out with a new and improved product. as a result, the firm projects an roe of 20%, and it will maintain a plowback ratio of 0.30. its projected earnings are $2 per share. investors expect a 14% rate of return on the stock.

a.

at what price and p/e ratio would you expect the firm to sell? (do not round intermediate calculations. round your answers to 2 decimal places.)

price $

p/e ratio

b.

what is the present value of growth opportunities? (do not round intermediate calculations. round your answer to 2 decimal places.)

Answers: 2

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