The FI Corporations dividends per share are expected to grow indefinitely by per year.

Required:

If this years yearend dividend is $ and the market capitalization rate is per year, what must the current stock price be according to the DDM

Note: Round your answer to decimal places.

If the expected earnings per share are $ what is the implied value of the ROE on future investment opportunities?

Note: Do not round intermediate calculations. Round your answer to decimal places.

How much is the market paying per share for growth opportunities ie for an ROE on future investments that exceeds the market capitalization rate

Note: Do not round intermediate calculations. Round your answer to decimal places.

Answer rating: 100% (QA)

FI Corporation Stock Valuation using Dividend Discount Model DDM Given Current dividend D0 800 Expec... View the full answer