Multiple Choice
Which of the following is true for a firm having a stock price of $42, and expected dividend of $3, and a sustainable growth rate of 8 percent?
A) it has a required return of 15.14 percent.
B) it has a dividend payout ratio of 37.5 percent.
C) it has a ROE of 7.14 percent.
D) it has a plowback rate of 7.14 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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