Question
A company has a beginning book value per share of $7.00, an expected growth rate of 15 percent, current earnings per share of $1.25, and
A company has a beginning book value per share of $7.00, an expected growth rate of 15 percent, current earnings per share of $1.25, and a required rate of return of 17 percent. If the dividend remains constant at $0.75 per share, what is next year's expected excess (residual) earnings per share?
the choice of answers: $1.44, $0.50, $0.25 and $5.75
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
