Question
Investors require a return of 12% from ABC, Inc. The company expect to have EPS of $1.25, which will be growing at a 5% rate
Investors require a return of 12% from ABC, Inc. The company expect to have EPS of $1.25, which will be growing at a 5% rate per year. And the company's retention ratio is 40%. How much percentage higher the ABC's return on equity will be than its required rate of return?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
9th edition
1259722619, 978-1260049190, 1260049191, 978-1259722615
