Question: please help with part b The Fi Corporation's dividends per share are expected to grow indefinitely by 5% per yeat. Required: a. If this year's
The Fi Corporation's dividends per share are expected to grow indefinitely by 5% per yeat. Required: a. If this year's year-end dividend is $10 and the market capitalization rate is 10% per year, what must the current stock price be according to the dividend discount model? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. b. If the expected earnings per share are $15, what is the implied value of the ROE on future investment opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) The Fi Corporation's dividends per share are expected to grow indefinitely by 5% per yeat. Required: a. If this year's year-end dividend is $10 and the market capitalization rate is 10% per year, what must the current stock price be according to the dividend discount model? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. b. If the expected earnings per share are $15, what is the implied value of the ROE on future investment opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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