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Grott and Perrin, Inc., has expected earnings of $3 per share for next year. The firm's...

Grott and Perrin, Inc., has expected earnings of $3 per share for next year. The firm's ROE is 20%, and its earnings retention (plowback) ratio is 40%. If the firm's required rate of return is 15%, what is the present value of its growth opportunities (PVGO)?

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Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard HY200 HR Font Alignment Number Styles Cells Edting HS HT HU HV HW HX HY HZ IA IB IC ID IE 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 4HKE CAPM UTILITY, SH step 1g ROEx retention ratio(b) 8-20% x 40% 8.00% step 201 EPS (1-b) D1-3 (1-0.40) 1.8 step 3 PO D1/(ke-g) ke-required rate-15% PO1.8/(0.15-0.08) 25.71 step 4 PVGO-PO- (D1/ke) 25.71 (1.8/0.15) PVGO- 13.71 future INDEX INTL CAP BUD LEASING PV, FV, ANNUITY DIR stru WACCRESI ex d 福 130% beta bond c cleanYIELD bond erences: A1310

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