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Jurassic Toys just paid a dividend of $4 per share because of the strong sales figure in the last year. Stock analysts expect that strong sales will continue. They forecast that the dividend growth rate for the next few years will be 3.5 percent based on a retention ratio of 0.7. What is the value of ROE used in the analysis? O A. 5% O B. 7.1% O C. 1.4% O D. 2.45%

Jurassic Toys just paid a dividend of $4 per share because of the strong sales figure in the last year. Stock analysts expect that strong sales will continue. They forecast that the dividend growth rate for the next few years will be 3.5 percent based on a retention ratio of 0.7. What is the value of ROE used in the analysis? O A. 5% O B. 7.1% O C. 1.4% O D. 2.45%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Jurassic Toys just paid a dividend of $4 per share because of the strong sales figure in the last year. Stock analysts expect that strong sales will continue. They forecast that the dividend growth rate for the next few years will be 3.5 percent based on a retention ratio of 0.7. What is the value of ROE used in the analysis? A. 5% В. 7.1% О С. 1.4% O D. 2.45%
Transcribed Image Text:Jurassic Toys just paid a dividend of $4 per share because of the strong sales figure in the last year. Stock analysts expect that strong sales will continue. They forecast that the dividend growth rate for the next few years will be 3.5 percent based on a retention ratio of 0.7. What is the value of ROE used in the analysis? A. 5% В. 7.1% О С. 1.4% O D. 2.45%
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