Trend-line inc. has been growing at a rate of 6 per year, Ask an Expert

Finance

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?
b. if Trend- Line's earnings per share will be $8, what part of Trend-Line's value is due to assets in place, and what part to growth opportunities.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M927859

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