Question
Fincorp will pay a year-end dividend of $2.80 per share, which is expected to grow at a rate of 2% for the indefinite future. The
Fincorp will pay a year-end dividend of $2.80 per share, which is expected to grow at a rate of 2% for the indefinite future. The discount rate is 10%.
a.What is the stock selling for?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b.If earnings are $3.20 a share, what is the implied value of the firm's growth opportunities?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
