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The Fl Corporation's dividends per share are expected to grow indefinitely by 6% per year. a. If this year's year-end dividend is $5.00 and the
The Fl Corporation's dividends per share are expected to grow indefinitely by 6% per year. a. If this year's year-end dividend is $5.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Current stock price b. If the expected earnings per share are $10.00, what is the implied value of the ROE on future investment opportunities? (Round your answer to 2 decimal places.) Value of ROE % c. 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)? (Round your answer to 2 decimal places.) Amount per share
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