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PLEASE PART (E) Dishwasher's Delights plows back 69.50% of its earnings to take on projects that earn the firm a 13.50% rate of return. Dishwasher's
PLEASE PART (E)
Dishwasher's Delights plows back 69.50% of its earnings to take on projects that earn the firm a 13.50% rate of return. Dishwasher's stockholders require a return of 13.00% return on their common stock. Earnings per share are expected to be $3.00 next year. Required: a. What is the expected growth rate for Dishwasher's common stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Growth rate 9.38 b. What is the expected dividend next year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is the intrinsic value of Dishwasher's stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Intrinsic value d. If Dishwasher's management chose to pay out all earnings as dividends, what would be the intrinsic value of its stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) e. What is the present value of growth opportunities for Dishwasher's Delights? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Step by Step Solution
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