Earning can they distribute to shareholders as dividends

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Reference no: EM132006003

1. A company wants to achieve a steady 7% growth rate. If they consistently earn a 12% return on equity, what portion of their earning can they distribute to shareholders as dividends? Explain step by step how to anserw using formulas and excel calculations.

2. You have accumulated some money for your retirement. You are going to withdraw 55070 every year at the end of the year for the next 17 years. How much money have you accumulated for your retirement? Your account pays you 16.12% per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

Reference no: EM132006003

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