table font5 color windowtext font size 12pt font weight 400 font style normal text decoration none font family Courier New ,monospace td padding top 1px padding right 1px padding left 1px color windowtext font size 10pt font weight 400 font style normal text decoration none font family Arial vertical align bottom border medium none white space nowrap xl63 xl64 font size 14pt font family Courier New ,monospace background none repeat scroll 0 0 white xl65 font size 14pt font family Courier New ,monospace background none repeat scroll 0 0 white xl66 font size 14pt font family Courier New ,monospace text align left background none repeat scroll 0 0 white xl67 font size 14pt font weight 700 font family Courier New ,monospace background none repeat scroll 0 0 white xl68 font size 14pt font family Courier New ,monospace background none repeat scroll 0 0 white white space normal xl69 background none repeat scroll 0 0 white white space normal The KJ Corporation has averaged an ROE of 18 over the past 5 years and that should continue into the future The firm has a payout ratio of 56 on earnings per share of $7 83 and paid the dividend yesterday The discount rate for a firm of KJ's risk level is 18 a) What is the expected Growth Rate of KJ's dividend (note round to the nearest 100th of a percent) (1 mark) b) What is KJ's current stock price (note round to the nearest cent) (1 mark)

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The KJ Corporation has averaged an ROE of					18%	over
the past 5 years and that should continue into the
future. The firm has a payout ratio of					56%	on
earnings per share of			$7.83	and paid the dividend
yesterday. The discount rate for a firm of KJ's
risk level is		18%

a)	What is the expected Growth Rate of KJ's dividend? (note: round to the nearest 100th of a percent) (1 mark)

b)	What is KJ's current stock price? (note: round to the nearest cent) (1 mark)

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