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You are analyzing the stock of a public utility. The company's most recent earnings per...

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Finance

You are analyzing the stock of a public utility. The company's most recent earnings per share equaled $3.50. The company's retention rate is 0.60. Te company's return on equity is 14 percent. The cost of equity is 12 percent

.a. What is the sustainable growth rate?

b. Based on the sustainable growth rate and the other information provided to you, what is your estimate of the company's equity value?

c. What is the present value of growth opportunities?

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