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Bob's Rawhide Company has a dividend payout ratio of 30%. Next year will earn $2.50 per share and have a return on equity of 15/o.

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Bob's Rawhide Company has a dividend payout ratio of 30%. Next year will earn $2.50 per share and have a return on equity of 15/o. e shareholders' required return is 12%. Calculate the company's growth rate of EPS. Using the earnings model, what is the value of the stock? Construct a data table that shows how the growth rate and value of the stock will change if the ROE ranges between 10% and 20%, in \% increments. Now, using that data, create a scatter chart to show the relationship between the value of the stock and the ROE. Is the relationship linear? At what point does the model break down? Using the constant-growth dividend discount model, what is the value of the stock

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