General accounting A corporation has earnings of $3.80 per share and pays out $1.14per share in dividends. The Return-on-Equity (ROE) is 15% andhas a PE ratio of 12.What is the annual growth rate of this company?a. 10.50%b. 11.55%c. 12.85%d. 13.20%

To determine the annual growth rate of the company, we can use the Sustainable Growth Rate (SGR)…

Answered: A corporation has earnings of $3.80 per…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of the issue’s gross proceeds, what is the cost of external equity, re?
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Five measures of solvency or profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Income before income tax was 3,000,000, and income taxes were 1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled 1,200,000. The common stock was selling for 32 per share at the end of the year. Determine each of the following: (a) times interest earned ratio, (b) earnings per share on common stock, (c) price-earnings ratio, (d) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
What is the annual growth rate of this company on these financial accounting question?
Need help with this accounting question
Financial Accounting Question please answer
A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% OC. 5.52% O D. 22.08%
A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year. The company's cost of equity is 11%. What is the expected annual growth rate of the company's dividends? O A. 11.04% O B. 16.56% O C. 5.52% O D. 22.08%
What is the company's return on equity on these financial accounting question?
?? Financial accounting question
A company has an annual dividend growth rate... Give me answer this financial accounting question
give me this question answer

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Financial Accounting

Accounting

ISBN:

9781337272124

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

A corporation has earnings of $3.80 per share and pays out $1.14 per share in dividends. The Return-on-Equity (ROE) is 15% and has a PE ratio of 12. What is the annual growth rate of this company? a. 10.50% b. 11.55% c. 12.85% d. 13.20%