Question
Stockholders of Dogs R Us Pet Supply expect a 9% rate of return on their stock. Management has historically been generating an ROE of 8%,
Stockholders of Dogs R Us Pet Supply expect a 9% rate of return on their stock. Management has historically been generating an ROE of 8%, but now believes that future ROE will be 9.5% for the next years. Given this, the firm's optimal dividend payout ratio is now
Round to the 3rd decimal
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
