Question
You expect your company to have earnings of $100 per share in the next twelve months and pay a dividend of $84 per share out
You expect your company to have earnings of $100 per share in the next twelve months and pay a dividend of $84 per share out of those earnings. The company has a return on new investments of 49.5% while its equity cost of capital is 10.1%.
What is the expected constant growth rate for the company's earnings in percentage?
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The expected constant growth rate for the companys earnings is ...
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
