Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year. Assume next year's dividend

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Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year. Assume next year's dividend

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Company Z S Earnings And Dividends Per Share Are Expected To Grow Indefinitely By 4 A Year Assume Next Year S Dividend 1
Company Z S Earnings And Dividends Per Share Are Expected To Grow Indefinitely By 4 A Year Assume Next Year S Dividend 1 (254.09 KiB) Viewed 10 times
Company Z's earnings and dividends per share are expected to grow indefinitely by 4% a year. Assume next year's dividend per share is $16 and next year's EPS is $1. The market capitalization rate is 14%. If Company Z were to distribute all of its earnings, it could maintain a level dividend stream of $1 a share. How much is the market actually paying per share for growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value growth opportunities
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