Question
Eastern Electric currently pays a dividend of about $1.65 per share and sells for $30 a share. If the sustainable growth rate is 6% and
Eastern Electric currently pays a dividend of about $1.65 per share and sells for $30 a share.
If the sustainable growth rate is 6% and the plowback ratio is .4, what must be the rate of return earned by the firm on the new investments? (Enter answer as a percent - rounded to 2 decimal places)
Rate of Return: ???
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Stock Market Investing For Beginners
Authors: Andrew P.C.
1st Edition
1549522132, 978-1549522130
