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The KJ Corporation has averaged an ROE of | 18% | over | ||||||
the past 5 years and that should continue into the | ||||||||
future. The firm has a payout ratio of | 56% | on | ||||||
earnings per share of | $7.83 | and paid the dividend | ||||||
yesterday. The discount rate for a firm of KJ's | ||||||||
risk level is | 18% | |||||||
a) | What is the expected Growth Rate of KJ's dividend? (note: round to the nearest 100th of a percent) (1 mark) | |||||||
b) | What is KJ's current stock price? (note: round to the nearest cent) (1 mark) | |||||||
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