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The company has total net earnings of $8 million per year. The company has a share price of $15. Every year it pays out 30%

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The company has total net earnings of $8 million per year. The company has a share price of $15. Every year it pays out 30% its earnings to shareholders. There are 800.000 shares in issue. Dividends per share are expected to grow indefinitely by 0,5%. a) What is the plowback ratio for this company? b) What rate of return do shareholders in this company expect

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