Question
You expect your company to have earnings of $50 per share in the next twelve months and pay a dividend of $14 per share out
You expect your company to have earnings of $50 per share in the next twelve months and pay a dividend of $14 per share out of those earnings. The company has a return on new investments of 19.5% while their equity cost of capital is 10.1%.
What is the expected growth rate for the company's earnings in percentage points?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
