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?
Multiple Choice
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2%
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1.5%
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.5%
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1%
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The Financial System Financial Regulation And Central Bank Policy
Authors: Thomas F. Cargill
1st Edition
1107035678, 9781107035676
