Question
Fincorp will pay a year-end dividend of $2.90 per share, which is expected to grow at a rate of 5% for the indefinite future. The
Fincorp will pay a year-end dividend of $2.90 per share, which is expected to grow at a rate of 5% for the indefinite future. The discount rate is 15%.
What is the stock selling for?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
If earnings are $3.60 a share, what is the implied value of the firms growth opportunities?
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The Wealthtech Book The FinTech Handbook For Investors Entrepreneurs And Finance Visionaries
Authors: Susanne Chishti, Thomas Puschmann
1st Edition
1119362156, 978-1119362159
