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Problem 3 (4 marks) Internet industries expects to earn $12.00 for the coming vear, and pay a $3.00 dividend. Its ROA is 14 percent, while
Problem 3 (4 marks) Internet industries expects to earn $12.00 for the coming vear, and pay a $3.00 dividend. Its ROA is 14 percent, while its leverage factor is 1.4 . a) Calculate the expected growth rate in dividends. b) Given a required rate of return of 18 percent, determine the estimated price for High Tech, InC., common stock. c) Calculate the expected dollar dividend two periods from now
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