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Problem:

Huron Manufacturing plans to pay a dividend of $5 per share. The growth rate is 7 percent and the discount rate is 12 percent.

Required:

Question: What is the present value of growth opportunities (PVGO)?

A. $100

B. No idea

C. $58.33

D. $41.67

Please provide step by step solution.

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Category:- Basic Finance
Reference No.:- M91147120

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