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Trend-Line Inc. has been growing a rate of 5% per year and its expected to continue to do so indefinitely. The next dividend is expected
Trend-Line Inc. has been growing a rate of 5% per year and its expected to continue to do so indefinitely. The next dividend is expected to be $8 per share.
A. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling?
B.If Trend-Line's earnings per share will be $11 next year, what part of its value is due to assests in place?
C.If Trend-Line's earnings per share will be $11 next year, what part of its value is due to growth opportunities?
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