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For probloms below, use the following parameters. The annual dividend payout ratio is 60%, net income for the year that ended yesterday was $0.24 per
For probloms below, use the following parameters. The annual dividend payout ratio is 60%, net income for the year that ended yesterday was $0.24 per share, book value of equity is $2.00 per share and the firm has 10 shares outstanding. Equity holders demand an annual rate of return of 9% 1. What is this firm's ROE? [A]% 2. What is this firm's plowback ratio? [B]% 3. What is this firm's annual sustainable growth rate? [C]% 4. What dividend per share did this firm pay yesterday? (For this problem, assume that the annual dividend is paid on the final day of the year, which is the same day that earnings are calculated.) [D] 5. What is the book value of the firm's total equity? [E] 6. What is this firm's share price? [F] 7. Which is greater: share price or book value per share? Write down share price or book value per share. [G] 8. What is this firm's price to earnings ratio? [H] 9. Five years from yesterday, what will be the vaue of: (1) dividend per share? [U] (2) book value of equity per share? []] (3) share price? [K] (4) price to earnings ratio? [L] Keep two decimal places
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