Question
A)Shield Corp. expects an earnings per share of $2.43 and reinvests 20% of its earnings. Management projects a rate of return of 9% on new
A)Shield Corp. expects an earnings per share of $2.43 and reinvests 20% of its earnings. Management projects a rate of return of 9% on new projects and investors expect a 9% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.
b)what would the price of the stock with no growth?
Enter your response below rounded to 2 DECIMAL PLACES.
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International Financial Operations Arbitrage Hedging Speculation Financing And Investment
Authors: I. Moosa
1st Edition
1349433128, 978-1349433124
