Business, 25.03.2020 20:59 437012

The fi corporation's dividends per share are expected to grow indefinitely by 5% per year.

a. if this year's year-end dividend is $8 and the market capitalization rate is 10% per year, what must the current stock price be according to the ddm? current stock price $

b. if the expected earnings per share are $12, what is the implied value of the roe on future investment opportunities? (do not round intermediate calculations. round your answer to the nearest whole percent.) value of roe %

c. how much is the market paying per share for growth opportunities (that is, for an roe on future investments that exceeds the market capitalization rate)? amount per share

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The fi corporation's dividends per share are expected to grow indefinitely by 5% per year.

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