A company has an ROE of 8% and payouts 66% of its earnings as dividends. It...
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A company has an ROE of 8% and payouts 66% of its earnings as dividends. It is planning to pay a $4.42 dividend next year with a current stock price of $40. What is the company's dividend growth rate? Express your answer as a percentage and round to two decimals. A company has an ROE of 8% and payouts 66% of its earnings as dividends. It is planning to pay a $4.42 dividend next year with a current stock price of $40. What is the company's dividend growth rate? Express your answer as a percentage and round to two decimals.
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To calculate the dividend growth rate we can use the formula Dividend Growth Rate Dividend Next Year ... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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