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Suppose you are an analyst in pharmaceutical industry for Bank of America. You collect the following data to estimate the expected growth rate of dividends

Suppose you are an analyst in pharmaceutical industry for Bank of America. You collect the following data to estimate the expected growth rate of dividends and use it as an input for valuing an oil companys common stock.

Return on Assets	10%
Profit Margin	8%
Debt/Equity	4.5
Payout Ratio	40%

a. The leverage ratio of this company is b. The companys expected growth rate is

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