Question
Question 6 1pts Forest Products Inc has a ROE of 13 percent. Its earnings last year were $3.25 and it paid a dividend of
Question 6\
1pts
\ Forest Products Inc has a ROE of 13 percent. Its earnings last year were
$3.25
and it paid a dividend of
$1.25
. What is the company's sustainable growth rate?\
5%
\
8%
\
9%
\
3%
\ Question 7\ 1 pts\ Westerlies' stock has a sustainable growth rate of 4 percent, ROE of 12 percent, and dividends per share of
$1.50
. What is it the company's earnings per share (EPS)? Hint: Earnings, dividends paid, and the payout ratio have a particular relationship.\ 2.00\ 1.75\ 2.25\ 2.50\ Question 8\
1pts
\ Backcountry Adventures stock has a sustainable growth rate of 2 percent, ROE of 10 percent, and dividends per share of
$3.50
. Similar companies have a PE: ratio of 14. What is the company's expected share price?\ 55.75
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