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(Common Stock Valuation): XYZ Inc. has an 11.5% equity return and retains 55% of its earnings for re-investment purposes. Recently it paid a dividend of
(Common Stock Valuation): XYZ Inc. has an 11.5% equity return and retains 55% of its earnings for re-investment purposes. Recently it paid a dividend of $ 3.25, and the stock sells in $ 40 at the moment.
to. What is the growth rate of XYZ ??
B. What is the expected rate of return on XYZ shares?
C. If you require a 13% performance, should you invest in the firm?
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
