Question
The KJ Corporation has averaged an ROE of 11% over the past 5 years and that should continue into the future.The firm has a payout
The KJ Corporation has averaged an ROE of 11% over the past 5 years and that should continue into the future.The firm has a payout ratio of 80% on earnings per share of $5.18 and paid the dividend yesterday. The discount rate for a firm of KJ's risk level is 12%
a) What is the expected Growth Rate of KJ's dividend?
b) What is KJ's current stock price?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
