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Eastern Electric currently pays a dividend of $ 1 . 7 6 per share and sells for $ 3 0 a share. If investors believe
Eastern Electric currently pays a dividend of $ per share and sells for $ a share.
If investors believe the growth rate of dividends is per year, what rate of return do they expect to earn on the stock?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
If investors' required rate of return is what must be the growth rate they expect of the firm?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
If the sustainable growth rate is and the plowback ratio is what must be the rate of return earned by the firm on its new investments?
Note: Enter your answer as a percent rounded to decimal places.
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