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Given ValueLine's ROE estimated for 1995 through 1997 and at the projected earnings and dividends per share for the same period. Could those gures be

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Given ValueLine's ROE estimated for 1995 through 1997 and at the projected earnings and dividends per share for the same period. Could those gures be used to develop an estimated longrun \"sustainable\" growth rate? Does this gure support the 7.5 percent growth rate given in the problem? [I-Iint: Think of the formula g = hr = (Retention ratio)(ROE).]

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