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11. a) The Farrow plc. corporations dividends per share are expected to grow indefinitely by 5% per year. i)If this years year-end dividend is 8
11. a) The Farrow plc. corporations dividends per share are expected to grow indefinitely by 5% per year. i)If this years year-end dividend is 8 and the market capitalization rate is 10% per year, what must the current stock price be according to the Dividend Discount Model (DDM)? ii) If the expected earnings per share are 12, what is the implied value of the ROE on future investment opportunities? iii) How much is the market paying per share for growth opportunities?
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