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An offshore business company has the following data: No common shares outstanding (Ncs) 80,000 Par Value $4 Earnings are used to finance the company's growth.

An offshore business company has the following data: No common shares outstanding (Ncs) 80,000 Par Value $4 Earnings are used to finance the company's growth. Company's growth (average/year) 10% Realistic future growth* 4%* associated with an increase in dividend payout. The rate of return required for new investment (rs) 12% The new investment for next year should not exceed $500,000 Projected net income for next year [P(NI)] $1,000,000 Projected dividend payout for next year 20% projected retained earning for next year $800,000 Assume that the new investment is financed by next year retained earning, the company uses the residual distribution model, and the company pays all distribution in the form of dividends. Find DPS, and payout ratio? Under the following conditions, P0 =? D1 based on payout ratio of 20% and EPS of $13 D1 = payout ratio * EPS $3 Find: rs, g, and P0

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