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1. Assume the following for a growth company: Today's Share price Po $75 Expected Dividends per share D $1.25 Expected Earnings per share EPS1= $5
1. Assume the following for a growth company: Today's Share price Po $75 Expected Dividends per share D $1.25 Expected Earnings per share EPS1= $5 Shareholders' Expected Growth g= 12% Steady state cost of equity for similar company Ke(ss)= 10%. Using the Gordon growth model determine the firm's cost of equity, ke ke D = 52 +9 Po Demonstrate the company is a growth company
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Wiley Gaap Interpretation And Application Of Generally Accepted Accounting Principles 2009
Authors: Barry J. Epstein, Ralph Nach, Steven M. Bragg
1st Edition
0470286067, 978-0470286067
