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can you answer this question for me please? The FI Corporation's dividends per share are expected to grow indefinitely by 4% per year. Required: a.
can you answer this question for me please?
The FI Corporation's dividends per share are expected to grow indefinitely by 4% per year. Required: a. If this year's year-end dividend is $9 and the market capitalization rate is 10% per year, what must the current stock price be according to the dividend discount model? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If the expected earnings per share are $14, what is the implied value of the ROE on future investment opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. How much is the market paying per share for growth opportunities (PVGO), that is, for an ROE on future investments that exceeds the market capitalization rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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