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1 . a public company is expected to pay out 1 0 % of its earnings per share as dividends over the next 3 years.
a public company is expected to pay out of its earnings per share as dividends over the next years. The other of the earnings will be invested in opening new locations of its chain restaurant. Due to this growth, you expect the company's EPS to be $ $ $ and $ in the next four years. After years, you expect the company to slow down expansion and thus begin paying out of earning as dividends. The remaining will be invested in opening stores that earn a return. Thus, the company's EPS will grow at a rate of Investors in tech stocks as risky as this companys expect to earn a rate of return.
a What do you expect the price of the company's stock to be years from today?
b What dividends will be paid over the next years?
c What do you expect the price of the company's stock to be today?
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