Ace Ventura, Inc

question 4

Multiple Choice

Ace Ventura, Inc., has expected earnings of $5 per share for next year. The firm's ROE is 15%, and its earnings retention ratio is 40%. If the firm's market capitalization rate is 10%, what is the present value of its growth opportunities?

• A) $25
• B) $50
• C) $75
• D) $100

---

Definitions:

Current Flow

The movement of electric charge carriers, like electrons or ions, through a conductor or space.

Circuit

A closed path through which an electric current flows or may flow.

Transfer Of Function

A term used to describe a behavior that may one day serve the purpose of getting a student attention and the next day used to escape an unpleasant task.

Behavior

The actions or reactions of an individual, usually in relation to the environment, which can be observed externally.