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Answer questions 1-4 using the information below. ABC's most recent dividend (just paid) was 6$ and its most recent earnings, Eo, was $12 per share.

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Answer questions 1-4 using the information below. ABC's most recent dividend (just paid) was 6$ and its most recent earnings, Eo, was $12 per share. The stock is currently trading at $80. If the investor's required rate of return for this investment is 10%: What's your estimate of growth rate, g? O 2.11% O 1.91% 0 1.88% O 2.32% QUESTION 2 What's the current plowback ratio? O 60% O 50% O 40% O 33% QUESTION 3 What's your estimate of return on equity, ROE? O 4.66% O 2.33% O 2.15% 0 4.15% QUESTION 4 Suppose the CFO of the company decides to undertake a strategy to boost the growth of the company. Therefore she decides to increase plowback ratio (b) to 75%. Does this strategy lead to an increase stock price? O No becuaser ROE O No becauser > ROE

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