9

The Fl Corporation's dividends per share are expected to grow indefinitely by 5% per year. a. If this year's year end dividend is $11 and the market capitalization rate is 10% per year, what must the current stock price be according to the DOM? (Do not round intermediate calculations answer to 2 decimal places) Current stock price $ b. If the expected earnings per share are $16, what is the impled value of the ROE on Nuture investment opportunities? (Do not round intermediate calculations. Round your answer to 2 decim 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 ratoy (Do not round Intermediate calculatie answer to 2 decimal places. Amount per share $