Question
A firm expects its next year earnings per share to equal $1.00 and its next year cash dividends per share (d 1 ) to equal
A firm expects its next year earnings per share to equal $1.00 and its next year cash dividends per share (d1) to equal $0.25. This firms annual Cost of Equity (ke) is 8% and Return on Equity is 10%. What is its annual growth rate?
| a. | 6% | |
| b. | 2.5% | |
| c. | 2% | |
| d. | 7.5% |
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Personal Finance Turning Money Into Wealth
Authors: Arthur J. Keown
6th Edition
0132719169, 978-0132719162
