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.)
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.)