A Corporation has a dividend payout ratio of 25 percent and a sustainable growth rate of 12 percent. What is the company's return on equity (ROE)? A. 0.26 B. 0.16 C. 0.18 D. 0.24 E. 0.12
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- use EXCEL and provide Cell References for Calculations.What is the return on equity?For Company ABC, if stock price P0 = $30; dividend paid at the end of period 1 D1 = $3.00; growth rate g = 5%; What’s the required rate of return for equity holder rs = ? If the flotation cost F = 10%; What’s the required rate of return for equity holder rs = ?
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