Fincorp will pay a year-end dividend of $2.40 per share, which is expected to grow at a
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Question:
Fincorp will pay a year-end dividend of $2.40 per share, which is expected to grow at a rate of 4% for the indefinite future. The discount rate is 10%. |
a. | What is the stock selling for? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Stock price | $ |
b. | If earnings are $3.60 a share, what is the implied value of the firm’s growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Implied value | $ |
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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