You expect your company to have earnings of $100 per share in the next twelve months and

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You expect your company to have earnings of $100 per share in the next twelve months and pay a dividend of $84 per share out of those earnings. The company has a return on new investments of 49.5% while its equity cost of capital is 10.1%.

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

Related Book For answer-question

Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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Posted Date: Feb 08, 2021 11:32 PM

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You expect your company to have earnings of $100 per share in the next twelve months and

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The expected constant growth rate for the companys earnings is ... View the full answer

Cornerstones of Financial and Managerial Accounting

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