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Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is
Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. a. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling? (Do not round intermediate calculations.) b. If Trend-Line's earnings per share will be $8 next year, what part of its value is due to assets in place? (Do not round intermediate calculations.) c. If Trend-Line's earnings per share will be $8 next year, what part of its value is due to growth opportunities? (Do not round intermediate calculations.)
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