Problem $7-41$ Growth Opportunities $($LO$2)$

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.$)$

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b$.$ If Trend$-$Line$$s earnings per share will be $$8$ next year, what part of its value is due to assets in place? $($Do not round intermediate calculations.$)$

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c$.$ If Trend$-$Line$$s earnings per share will be $$8$ next year, what part of its value is due to growth opportunities? $($Do not round intermediate calculations.$)$

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