Hot Co had earnings in the last period of $4 per share. Earnings are growing at a constant rate of 6%, and expected to continue growth at that rate. Management of Hot Co, estimates that the required rate of return on their shares is 10%. They would like to target a trading price for their shares at $20/sh. 

The dividend payout ratio that most closely meets their objective is?

Answer rating: 100% (QA)

The Gordon Growth Model calculates the intrinsic value of a stock based on its exp... View the full answer