Question
If the payout ratio is 45%, growth in EPS is 2.5% and your required return is 9.5%, calculate the price earnings ratio. b) If
If the payout ratio is 45%, growth in EPS is 2.5% and your required return is 9.5%, calculate the price earnings ratio. b) If earnings per share rises by $1.50 what would be the rise in stock price. Calculate the implied return when the expected forthcoming annual dividend per share is $3.75 with a growth (in EPS) of 4.5% and a current price of $75.
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
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