Flanders, Inc., has expected earnings of $4 per share for next year. The firm's ROE is 13%, and its earnings retention r
Posted: Thu Dec 23, 2021 9:07 am
Flanders, Inc., has expected earnings of $4 per share for next
year. The firm's ROE is 13%, and its earnings retention ratio is
30%. If the firm's market capitalization rate is 8%, what is the
present value of its growth opportunities?
year. The firm's ROE is 13%, and its earnings retention ratio is
30%. If the firm's market capitalization rate is 8%, what is the
present value of its growth opportunities?