Question: could not find the last two answers for nothing Problem 7-17 Constant-Growth Model (LO2) Eastern Electric currently pays a dividend of $1.83 per share and

could not find the last two answers for nothing

could not find the last two answers for nothing
Problem 7-17 Constant-Growth Model (LO2) Eastern Electric currently pays a dividend of $1.83 per share and sells for $33 a share. a. If Investors believe the growth rate of dividends Is 2% per year, what rate of return do they expect to earn on the stock? (Do no round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete and correct. Rate of return 7.70% b. If Investors' required rate of return Is 10%, what must be the growth rate they expect of the firm? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) * Answer is complete but not entirely correct. Growth rate 1.60 () % c. If the sustainable growth rate is 3% and the plowback ratio is 0.3. what must be the rate of return earned by the firm on its new Investments? (Enter your answer as a percent rounded to 2 decimal places.) * Answer is complete but not entirely correct. Rate of return 0.50 () 96

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