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An investor believes Caterpillar (CAT) to be worth $275 per share and projects earnings of $21.15 next year (Year 1) to expand by 7% a
An investor believes Caterpillar (CAT) to be worth $275 per share and projects earnings of $21.15 next year (Year 1) to expand by 7% a year in perpetuity. If the investor is using a 9% required return, what is the projected dividend and payout ratio next year if the investor assumes the payout ratio will remain constant
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