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Problem 7-22 Constant-Growth Model (LO2) Fincorp will pay a year-end dividend of S260 per share, which is expected to grow at a rate of 3%
Problem 7-22 Constant-Growth Model (LO2) Fincorp will pay a year-end dividend of S260 per share, which is expected to grow at a rate of 3% for the indefinite future. The discount rate is 13%. a. What is the stock selling for? (Do not round intermediate calculations. Round your answer to 2 decimal places. b. If earnings are $2.80 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.) value 2 -F6 20
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