HW 4:

11. value 1.00 points Problem 7-10 Growth Opportunities (LO2) $ 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.) Current selling price b. If Trend-Line's earnings per share will be $8, what part of Trend-Line's value is due to assets in place, and what part to growth opportunities? (Do not round intermediate calculations.) Trend-Line's Value Assets in place $ Growth opportunities