The EPS of Sally Co. was $7.2 last year. It maintains a dividend payout ratio...
50.1K
Verified Solution
Link Copied!
Question
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
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
