Expected dividend and sustainable growth rate

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Reference no: EM131067215

Which of the following is true for a firm having a stock price of $42, and expected dividend of $3, and a sustainable growth rate of 8%?

a. It has a required return of 15.14%.

b. It has a dividend payout ratio of 37.5%.

c. It has an ROE of 7.14%.

d. It has a plowback rate of 7.14%.

Reference no: EM131067215

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