If the payout ratio is 45%, growth in EPS is 2.5% and your required return is...
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If the payout ratio is 45%, growth in EPS is 2.5% and your required return is 9.5%, calculate the price earnings ratio. b) If earnings per share rises by $1.50 what would be the rise in stock price. Calculate the implied return when the expected forthcoming annual dividend per share is $3.75 with a growth (in EPS) of 4.5% and a current price of $75. If the payout ratio is 45%, growth in EPS is 2.5% and your required return is 9.5%, calculate the price earnings ratio. b) If earnings per share rises by $1.50 what would be the rise in stock price. Calculate the implied return when the expected forthcoming annual dividend per share is $3.75 with a growth (in EPS) of 4.5% and a current price of $75.
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To calculate the priceearnings ratio PE ratio in this scenario we need to use the formula PE ratio 1 ... View the full answer
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