Ace Ventura, Inc., has expected earnings of $2 per share for next year. The firm's ROE is 10%, and its earnings retentio
Posted: Thu Dec 23, 2021 9:07 am
Ace Ventura, Inc., has expected earnings of $2 per share for
next year. The firm's ROE is 10%, and its earnings retention ratio
is 7.5%. If the firm's market capitalization rate is 2%, what is
the present value of its growth opportunities?
next year. The firm's ROE is 10%, and its earnings retention ratio
is 7.5%. If the firm's market capitalization rate is 2%, what is
the present value of its growth opportunities?