Question: Problem 7-22 Constant-Growth Model (LO2) Fincorp will pay a year-end dividend of $2.80 per share, which is expected to grow at a rate of 2%

Problem 7-22 Constant-Growth Model (LO2) Fincorp will pay a year-end dividend of $2.80 per share, which is expected to grow at a rate of 2% for the indefinite future. The discount rate is 10% a. What is the stock selling for? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price b. If earnings are $3.20 a share, what is the implied value of the firm's growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Implied value

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