Calculate stock price and growth rate of dividends

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Reference no: EM1358262

Stormy Weather has no attractive investment opportunities. Its return on investment (ROE) is equal to the discount rate which is 10 percent. Its expected earnings this year are $3 per share. Find the stock price and growth rate of dividends for plowback ratios (retention ratios) of:

a. Zero
b. 5%
c. 10%
d. 15%

Reference no: EM1358262

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