Investors require a return of 12% from ABC, Inc. The company expect to have EPS of $1.25,
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Investors require a return of 12% from ABC, Inc. The company expect to have EPS of $1.25, which will be growing at a 5% rate per year. And the company's retention ratio is 40%. How much percentage higher the ABC's return on equity will be than its required rate of return?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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