The price of GE stock is $38, and its latest annual earnings per share was $1.37 . If the appropriate discount rate for GE stock is rE=10%, what is the present value of GE's profitable future investment opportunities (PVPFIO)?
a. $14.30
b. $19.30
c. $24.30
d. $34.30
FORMULA: PVPFIO=V-Et/r
C
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