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The FI Corporation s dividends per share are expected to grow indefinitely by 6 % per year. Required: If this year s year - end

The FI Corporations dividends per share are expected to grow indefinitely by 6% per year.
Required:
If this years year-end dividend is $8.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM?
Note: Round your answer to 2 decimal places.
If the expected earnings per share are $16.00, what is the implied value of the ROE on future investment opportunities?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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