8.06

A company earned $5 per share in the year that just ended, The company has no more growth opportunities. The company has a 10 percent return on equity and a 10 percent cost of equity. Do not round intermediate calculations. Rovind your answers to the nearest cent. a. What is the stock worth today? s b. What ir the company was expected to earn $5.60 next vear and then never grow again? Assuming that their return on equity and cost of equity didn't change, what would the stock be worth today