Trend-Line Inc. has been growing at a rate of 10% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $6 per share.

a.	If the market expects a 15% rate of return on Trend-Line, at what price must it be selling? (Do not round intermediate calculations.)

Current selling price

$

b.	If Trend-Lines earnings per share will be $9, what part of Trend-Lines value is due to assets in place, and what part to growth opportunities? (Do not round intermediate calculations.)

	Trend-Lines Value
Assets in place	$
Growth opportunities	$