The FI Corporation's dividends per share are

expected to grow indefinitely by $5\%$ per year.

Required:

a$.$ If this year's year$-$end dividend is $$9$ and the

market capitalization rate is $8\%$ per year, what

must the current stock price be according to the

dividend discount model? $($Do not round

intermediate calculations. Round your answer to

$2$ decimal places.$)$

Current stock price

b$.$ If the expected earnings per share are $$15,$ what

is the implied value of the ROE on future

investment opportunities? $($Do not round

intermediate calculations. Round your answer to

$2$ decimal places.$)$

Value of ROE

$\%$