The KJ Corporation has averaged an ROE of 19% over the past 5 years and that should continue into the future. The firm has a payout ratio of 21% on future. The firm has a payout ratio of 21% on earnings per share of $8.40 and paid the dividend yesterday. The discount rate for a firm of KJ's risk level is 25%

a) What is the expected Growth Rate of KJ's dividend?

b) What is KJ's current stock price?

Answer rating: 100% (QA)

a To calculate the expected growth rate of KJs dividend we can use the Gordon Growth Model also know... View the full answer