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Q# 9. The Sisyphean Company's common stock is currently trading for $30.00 per share. The stock is expected to pay a $3.00 dividend at
Q# 9. The Sisyphean Company's common stock is currently trading for $30.00 per share. The stock is expected to pay a $3.00 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 12%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to: Q10 You expect that Bean Enterprises will have earnings per share of $3.0 for the coming year. Bean plans to retain all of its earnings for the next three years. For the subsequent two years, the firm plans on retaining 50% of its earnings. It will then retain only 25% of its earnings from that point forward If Bean's equity cost of capital is 11%, then the price of a share of Bean's stock is closest to: Q#11 Luther Industries stock is priced at $25 per share. It recently paid a dividend of $2.00 per share and is expected to grow at the rate of 5% for indefinite future. The required rate of return on this stock (cost of equity capital) is closet to:
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