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Check my wa Trend-Line Inc. has been growing at a rate of 6% per year and...

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Check my wa Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The
Check my wa 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.) Current selling price 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.) Trend-Line's value 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.) Trend-Line's value Next> 8 of 9 <Prev 0 Referral Patient ID

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ANSWCY price of stock using deividend growth Div. = rog 70 expected dividend of next year r = discount rate Po = price growthplow back ratio Shows as to what proportion of earning per share has been kept retained earnings for ploughing - back. it tel(b) If trend - plow back line than fallowed Criteria price according to of zero perpetuty PO = Divi r - - $ 80 0.10 part of v

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