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Fincorp will pay a year-end dividend of $3.20 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 $3.20 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.) Stock price b. If earnings are $3.50 a share, what is the implied value of the firm's growth opportunities? (Do not round intermediate calculatio Round your answer to 2 decimal places.) Implied value No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio Fincorp will pay a year-end dividend of $3.20 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.) Stock price b. If earnings are $3.50 a share, what is the implied value of the firm's growth opportunities? (Do not round intermediate calculatio Round your answer to 2 decimal places.) Implied value No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio No-Growth Industries pays out all of its earnings as dividends. It will pay its next $6 per share dividend in a year. The discount rate is 14%. a. What is the price-earnings ratio of the company? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio b. What would the P/E ratio be if the discount rate were 10%? (Round your answer to 2 decimal places.) P/E ratio
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