You expect your company to have earnings of $50 per share in the next twelve months and

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You expect your company to have earnings of $50 per share in the next twelve months and pay a dividend of $14 per share out of those earnings. The company has a return on new investments of 19.5% while their equity cost of capital is 10.1%.

What is the expected growth rate for the company's earnings in percentage points?

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Financial Accounting: A Business Process Approach

ISBN: 978-0136115274

3rd edition

Authors: Jane L. Reimers

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Posted Date: Jan 12, 2021 05:17 AM

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You expect your company to have earnings of $50 per share in the next twelve months and

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Expert Answer:

Answer Payout ratio 1450 ... View the full answer

Financial Accounting: A Business Process Approach

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