The FI Corporations dividends per share are expected to grow indefinitely by 6% per year.

Required: If this years year-end dividend is $7.00 and the market capitalization rate is 8% 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 $21.00, 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.

a. Current stock price
b. Value of ROE		%
c. Amount		per share