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Landon Enterprises can earn a 2 0 % rate of return on new projects from equity. The firm plans to retain 3 0 % of
Landon Enterprises can earn a rate of return on new projects from equity. The firm plans to retain of earnings back into the firm and pay the rest out as dividends. Earnings for this year will be $ per share. The current rate of return on similar stocks is
a What is the firms earnings growth rate?
b Based on this data, what would be the firms current stock price?
c If the firm pays all of its earnings out as dividends, what would the stock price be
d Based on the above, find the firms PVGO.
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