Consider a high-growth stock, intrinsically valued at 390.6. Its forward P/E ratio is 63 and...
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Consider a high-growth stock, intrinsically valued at 390.6. Its forward P/E ratio is 63 and an appropriate required rate of return is 0.14. The company pays no dividends. How much of the current stock value is represented by the firm's growth opportunities in dollars? Hint: Use the P/E ratio to estimate earnings with PO=value. 326.40 346.31 366.05 402.42 376.79
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