Question
Constant-Growth Model (LO2) Metatrend's stock will generate earnings of $5 per share this year. The discount rate for the stock is 15% and the rate
Constant-Growth Model (LO2) Metatrend's stock will generate earnings of $5 per share this year. The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%. a-1. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm: 0%. (Round your answers to 2 decimal places.)
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The Handbook For Investment Committee Members
Authors: Russell L. Olson
1st Edition
0471719781, 978-0471719786
