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Maxon Construction's current EPS is $3.34. It was $2.754 years ago. The company pays out 30% of its earnings as dividends, and the stock sells
Maxon Construction's current EPS is $3.34. It was $2.754 years ago. The company pays out 30% of its earnings as dividends, and the stock sells for $26.25. a. Calculate the past growth rate in earnings. (Hint: This is a 4-year growth period.) b. Calculate the next expected dividend per share, D1. Assume that the past growth rate will continue. c. What is the cost of equity, rr, for Maxon Step by Step Solution
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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
