Trend-line-what part of value is due to growth opportunities

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Reference no: EM131983823

Trend-Line Inc. has been growing at a rate of 5% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $8 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.)

b. If Trend-Line’s earnings per share will be $11 next year, what part of its value is due to assets in place? (Do not round intermediate calculations.)

Trend-Line's Value = ?

c. If Trend-Line’s earnings per share will be $11 next year, what part of its value is due to growth opportunities? (Do not round intermediate calculations.)

Trend-Line's Value = ?

Reference no: EM131983823

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