What is the annual growth rate of this company for this financial accounting question? Horizon Tech has earnings of $3.20 per share and pays out $0.80per share in dividends. The Return-on-Equity (ROE) is 15%, andthe company has a PE ratio of 12. What is the annual growth rateof this company?

Step 1: Definition of Growth Rate (g)The growth rate (g) of a company is the rate at which its…

Answered: Horizon Tech has earnings of $3.20 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

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Horizon Tech has earnings of $3.20 per share and pays out $0.80 per share in dividends. The Return-on-Equity (ROE) is 15%, and the company has a PE ratio of 12. What is the annual growth rate of this company?