Question
Computer Corp. reinvests 60% of its earnings in the firm. The stock sells for $50, and the next dividend will be $2.50 per share. The
Computer Corp. reinvests 60% of its earnings in the firm. The stock sells for $50, and the next dividend will be $2.50 per share. The discount rate is 15%. What is the rate of return on the companys reinvested funds? (Round your answer to 2 decimal places.)
| Rate of return on reinvested funds % |
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Finance For IT Decision Makers
Authors: Michael Blackstaff
1st Edition
3540762329, 978-3540762324
