Suppose Cisco has a payout ratio of 45% and an expected return on its future investments of

Question:

Suppose Cisco has a payout ratio of 45% and an expected return on its future investments of 9%. What is Cisco's expected growth rate? Please show calculation.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...