Question: Please give step by step on how to solve the followin gusing a financial calculator (BA II Plus) Company Z's earnings and dividends per share
Please give step by step on how to solve the followin gusing a financial calculator (BA II Plus)
Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. if next year's dividend is $10 and the market capitalization rate is 8%, what is the current stock price?
If Company Z(see question above) were to distribute all it's earnings, it could maintain a level dividend stream of $15 a share. How much is the market actually paying per share for growth opportunities?
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