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Q3. DPS of a company as $0.50 whereas the EPS was $2.25. The current stock price is $13 per share. The debt ratio of the
Q3. DPS of a company as $0.50 whereas the EPS was $2.25. The current stock price is $13 per share. The debt ratio of the company is 35%. The firm has $10 million in assets. Return on equity is of 18%, which is expected to continue this year and into the foreseeable future. a) Find the growth rate? b) Find the stocks required rate of return? c) If DPS is $1.75 find the firm's new expected long-run growth rate and required return
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