Question: I need part c , d , e, f F. (15%) (Stocks) Fincorp will pay a yearend dividend of $2.40 pet share, which is expected
F. (15%) (Stocks) Fincorp will pay a yearend dividend of $2.40 pet share, which is expected to grow at a 4% rate indefinitely. The discount rate is 12% a. (3%) What is the stock selling for? b. (3%) If total earnings are $3.10 a share, what must be the plow back ratio of the firm? c. (3%) What must be the return on equity for Fincorp shares? d. (2%) What is the max dividend the company can pay if it decides not to retain any earnings? e. (2%) What is the price per share if the company decides not to retain any earnings? f. (2%) Calculate the present value of growth opportunities for this firm
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