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The EPS of Sally Co. was $7.2 last year. It maintains a dividend payout ratio...

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Finance

The EPS of Sally Co. was $7.2 last year. It maintains a dividend payout ratio of 40%. Assume that the ROE of Sally Company is 16% and cost of equity is 13.5%. What is the present value of growth opportunities? Do not round your intermediate calculations.

A.

$25.3

B.

$22.5

C.

$20.5

D.

$27.6

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