Question
Metatrend's stock will generate earnings of $6 per share next year. The discount rate for the stock is 15% and the company's ROE is also
rate for the stock is 15% and the company's ROE is also 15%. Find the growth
rate of dividends and the expected stock price if the company has a payout policy
of 60%.
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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