The Shamrock Dogfood Company (SDC) has consistently paid out 40 percent of its earnings in dividends. The
Question:
The Shamrock Dogfood Company (SDC) has consistently paid out 40 percent of its earnings in dividends. The company's return on equity is 16 percent.
a. What would you estimate as to its dividend growth rate?
b. If you found out that the company was only growing at 2 percent, how much could the company afford to payout?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Dividend payout ratio 40 Return on equity 16 a Growth rate ...View the full answer
Answered By
John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
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Related Book For 
Investment Analysis and Portfolio Management
ISBN: 978-1305262997
11th Edition
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
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