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Suppose a firm has just reported an EPS of $4.55 (i.e., E_0 = 4.55) and expects to maintain a dividend payout ratio of 48
Suppose a firm has just reported an EPS of $4.55 (i.e., E_0 = 4.55) and expects to maintain a dividend payout ratio of 48 percent. The firm's price-earnings ratio (P_0/E_1) is 11 and its return on equity is 17.36 percent. a) What is current dividend? b) What is growth rate? c) What is current stock price? d) What is its required rate of return?
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a To find the current dividend we first need to calculate the earnings available for the dividend We know that the firms EPS is 455 and it plans to maintain a dividend payout ratio of 48 percent There...
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Multinational financial management
Authors: Alan c. Shapiro
10th edition
9781118801161, 1118572386, 1118801164, 978-1118572382
