An electricity company pays today a dividend $ 1 . 6 4 per share and the share

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Question:

An electricity company pays today a dividend $

1.64

per share and the share price is $

27 .

If the sustainable growth rate is

5 %

and the profit distribution ratio is

60 %

what will be the firm's return on equity?

Related Book For answer-question

Core Concepts of Accounting

ISBN: 978-0470499474

2nd edition

Authors: Cecily A. Raiborn

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Posted Date: Apr 20, 2024 12:40 AM

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An electricity company pays today a dividend $ 1 . 6 4 per share and the share

Question:

Expert Answer:

To calculate the firms return on equity ROE we need to know the earnings per share EPS and the ... View the full answer

Core Concepts of Accounting

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